HydroFlow Ltd $($HydroFlow$)$ is a dynamic water technology company that pioneers

innovative solutions for water management and conservation. Founded by a team of

visionary experts, the company's cutting$-$edge technologies address global water

challenges.

During the $2023$ year of assessment, SARS allowed HydroFlow Ltd to claim a doubtful

debt allowance of R$95000.$

During the $2024$ year of assessment a total impairment loss allowance $($IFRS $9$ loss

allowance$)$ of R$300000$ was determined by HydroFlow in terms of IFRS $9.$ It consisted

of R$100000$ measured at an amount equal to the lifetime expected credit loss and

R$200000$ measured at an amount equal to the $12-$month expected credit loss.

HydroFlow has never received any income from lease contracts.

REQUIRED:

Calculate the effect on taxable income in respect of the doubtful debt allowance in

terms of section $11($j$)$ of the Income Tax Act for HydroFlow Ltd for the $2024$ year of

assessment.