Mr Victor Crumb, aged 57 years old, owns a patisserie in Cape Town. He operates the shop
Question:
Mr Victor Crumb, aged 57 years old, owns a patisserie in Cape Town. He operates the shop on his own as a sole trader. He was previously a leading surgeon at Groote Schuur Hospital and due to the stress of the job, he resigned two years ago. He used his life savings to invest in the patisserie as well as in shares in a few companies. He invested in two JSE listed companies (Aspen and Vodacom) as well as an interest in the body corporate of the building his ex-wife currently resides in.
He earned/ incurred the following amounts (in Rands) for the year ended 29 February 2020:
Note
Pastry and cake sales 10 000
Receipt from the sale of old shop fittings 29 500
interest received 650 000
Operating expenditure (98 700)
Victor has a cash only policy on all sales. However, an old love interest of his required 10 dozen pastries and mini cakes for a high tea she was hosting. She promised payment at a later date. Victor therefore decided to offer credit to her, and the amount was settled in March 2020. This amount of R2 500 is included in the sales amount.
- Victor decided to refurbish the patisserie and reinstall new fittings. He therefore decided to sell the old fittings.
Calculate the tax on a micro business for the year Feb 2020
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman