Class Example

ABC $($Pty$)$ Ltd manufactures and sells deodorants. The information below relates to the year of assessment ended $31$ December $2023.$

Profit before tax R$983000$

The following transactions were not taken into account in the above profit before tax:

Restraint of trade to former lab consultant $R780000.$ The restraint of trade is for a period of three years. In this period the former employee cannot work for a competing company.

Donations to approved PBO R $97900.$

The following were taken into account in the profit before tax:

Maintenance allowance to company directors, R $115500.$

Trafic fines incurred by delivery drivers R $78200.$

Legal expenses relating to a lawsuit where a customer claimed that the deodorants gave them a harsh rash. The customer requested medical bill reimbursement of $R98200.$ The labels on all deodorants were clearly stated and indicated all legally required warnings and side effects. The legal expenses were $R48000.$ The case is yet to be settled.

calculate the taxable income of ABC $($Pty$)$ Ltd$.$ Start your calculation with profit before tax.