On 1 March 2021 Patrick Dlamini (a sole proprietor), registered his business Toys Galore (Pty) Ltd as
Question:
On 1 March 2021 Patrick Dlamini (a sole proprietor), registered his business Toys Galore (Pty) Ltd as a micro business for tax purposes. His business produces and sells children’s toys. His turnover (cash receipts) for the year of assessment ended 28 February 2022 amounted to R850 000. Baby Toys Ltd. still owed him R60 000 for toys sold and delivered on 20 February 2021. On 1 March 2021 he converted his house into a business premises. After 10 months in business, he needed a larger place and decided to sell the property. He sold the property on 1 December 2021 for R2 500 000. The base cost of the property is R800 000. Patrick also received dividend income of R20 000 and interest income of R30 000 during the year of assessment.
Required:
Q.4.1 Calculate Patrick Dlamini’s turnover tax liability for the 2022 year of assessment
Expert Answer:
The tax liability will be as follows a Total turnover R850000 66503 above from R750000 R50000 R6650 ... View the full answer
