QUESTION $3$

$(20$ Mark

Ava Mdluli $($aged $38)$ operated a clothing store in East London as a sole proprietor during the $2024$ year of assessment. The profit before tax amounts to R$405625,$ before taking the following information into account:

Bad debts written off consist of the following:

Trade debtors $-$ R$12000$

Loan to employee X $-$ R$15000$

Employee $x$ has left the employment and there is no trace of him.

Penalties and interest of R$5000$ paid to SARS relating to late submissions of tax returns.

Ava was robbed at gunpoint on $23$ January $2024.$ The loss as a result of the robbery amounted to R$3500.$

Ava paid R$22000$ for accounting fees.

Rental of R$45000$ was paid for a security system that will be used for the period $1$ March $2024-30$ September $2024.$

Ava paid R$38600$ towards her pension fund.

Required:

$3\mathrm{.}1$ Calculate Ava Mdluli's taxable income for the $2024$ year of assessment. Hint: start your calculation with

$(12$ Mart

the profit before tax figure that is given.

$3\mathrm{.}2$ Ava is considering purchasing a piece of land adjoining her business premises to use as parking for her clients for an amount of R$350000.$ Advise Ava on whether the cost of the land would qualify as an allowable

$(4$ Marh

deduction.

$3\mathrm{.}3$ Discuss which pensions are exempt from tax.

$(4$ Mark