Information regarding task 4:

Client: XP (Pty) Ltd (not a small business corporation as defined) needs help to calculate its provisional tax payments for the 28 February 2023 year of assessment.

You are told that the company has not made any provisional tax payments for 2023 year of assessment yet, as they were unsure when these payments needed to be made.

You obtain the following relevant information on 24 February 2023:

Year of assessment	Date assessment was issued (received)	Taxable income
2020	1 June 2022	R585 000
2021	10 August 2022	R678 000
2022	Not assessed	R821 000
2023	Estimated	R905 780

Other relevant info:

You inform the client that SARS (i.e. the Commissioner) will charge interest on the outstanding first provisional tax payment and recommend the company makes this payment as soon as possible.

Calculate the first provisional tax payment and provide your client with the date by when the first provisional tax payment must have been made in order to have prevented the payment of interest and penalties.

Provide brief reasons how the basic amount was selected/calculated in the calculation.

Calculate the amount of the second provisional tax payment that the client must make in

order to prevent the payment of interest and penalties.

Briefly explain to the client whether the interest charged by SARS on the outstanding first provisional tax payment will be deductible when determining the taxable income for the 2023 year of assessment, assuming it is paid before the end of the 2023 year of assessment