Page 7 - F6 - Capital Gains Tax - Debt Reduction
P. 7
Example – Other Expenditure
On 1 October 2014, Norush (Pty) Ltd owes debt of
R50 000. Norush (Pty) Ltd has used the debt to fund
ordinary operating expenses (for example salaries), all
of which are tax deductible under s 11(a). Norush
(Pty) Ltd’s creditors discharges the R50 000 of debt,
due to Norush (Pty) (Ltd)’s inability to pay.
Calculate the tax implications for Norush (Pty) Ltd of
the debt reduction for the 2015 year of assessment
ending on 30 April 2015.
