Question $1(20$ Marks$)$

Katz $($Pty$)$ Limited started trading on $1$ July $2023.$ Katz received R$500000$ from cash sales and has receivables of R$150000.$ Receipts from the disposal of furniture amounted to $R50000$ and disposal of motor vehicle R$65000.$ Tax deductible expenses amounted to R$285000.$

Required

a$)$ Calculate the qualifying turnover of Katz $($Pty$)$ Limited and conclude on whether Katz $($Pty$)$ Limited is a micro business $(8$ Marks$)$

b$)$ Calculate the tax expense for Katz $($Pty$)$ Limited assuming the company is a micro business $(10$ Marks$)$

c$)$ From a tax perspective why is it more beneficial for a company to be a microbusiness as compared to an SBC $(2$ marks$)$

Individuals tax table

$\backslash$table$[[$Taxable income,Rates of tax$],[1-237100,18\%$ of taxable income$],[237101-370500,42678+26\%$ of taxable income above $237100],[370501-512800,77362+31\%$ of taxable income above $370500],[512801-673000,121475+36\%$ of taxable income above $512800],[673001-857900,179147+39\%$ of taxable income above $673000],[857901-1817000,251258+41\%$ of taxable income above $857900],[1817001$ and above,$644489+45\%$ of taxable income above $1817000]]$

SBC tax table

$\backslash$table$[[$Taxable income,Rates of tax$],[1-95750,0\%$ of taxable income$],[95751-365000,7\%$ of taxable income above $95750],[365001-550000,18848+21\%$ of taxable income above $365000],[550001$ and above,$57698+27\%$ of the amount above $550000]]$

Micro business tax table

$\backslash$table$[[$Taxable income,Rates of tax$],[0-335000,0\%$ of taxable income$],[335001-500000,1\%$ of each R$1$ above $335000],[500001-750000,1650+2\%$ of the amount above $500000]]$