Abel (Pty) Ltd is a resident company with one shareholder, Mr Dlamini (33 years old). Abel (Pty) Ltd had a profit before tax of R1 000 000 for the financial year ended 28 February 2019. You may assume that the company’s taxable income equals its accounting profit before tax. Abel (Pty) Ltd distributed all the available profit after tax to Mr Dlamini on 28 February 2019. Calculate the tax payable by both Abel (Pty) Ltd and Mr Dlamini in respect of Abel (Pty) Ltd’s profits and the distribution thereof for the 2019 year of assessment.

Abel (Pty) Ltd is a resident company with one shareholder, Mr Dlamini (33 years old). Abel (Pty) Ltd had a profit before tax of R1 000 000 for the financial year ended 28 February 2019. You may assume that the company’s taxable income equals its accounting profit before tax. Abel (Pty) Ltd distributed all the available profit after tax to Mr Dlamini on 28 February 2019. Calculate the tax payable by both Abel (Pty) Ltd and Mr Dlamini in respect of Abel (Pty) Ltd’s profits and the distribution thereof for the 2019 year of assessment.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 15P

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