Page 65 - F6 Slide - Taxation - Lecture Day 2

EXAMPLE - ASSESSED LOSSES

• Abigail Ltd has an assessed loss of R200,000 in year 1

• Does not carry on trade in year 2

• Restarts trade in year 3 and generates taxable income

of R400,000

• What will Abigail Ltd’s tax position be in years 1-3?