Taxes commonly used by many countries include: (i)Import duty payable on specific types of imported goods (ii)Individual income tax, usually deducted at source (iii)Corporate income tax (iv)Value added tax. Which of the above would normally be defined as direct taxation?

Select one:

a. (ii) and (iii)

b. (i) and (iv)

c. (i) and (ii)

d. (ii) and (iv)

Which of the following is NOT a benefit of pay-as-you-earn (PAYE) method of tax collection?

Select one:

a. It makes it easier for governments to forecast tax revenues

b. It improves governments cash flow as cash is received earlier

c. It makes payment of tax easier for the tax payer as it is in instalments

d. It benefits the tax payer as it reduces the tax payable

BCF purchased an asset for R600,000 on 1 September 20X4. BCF incurred additional purchase costs of R5,000. Indexation of the cost of BCFs asset is allowed in Country X. The relevant index increased by 60% in the period from 1 September 20X4 to 31 August 20Y1. BCF sold the asset on 1 September 20Y1 for R1,200,000. BCF incurred selling costs of R9,000. Assume all purchase and selling costs are tax allowable. Tax is charged at 25%. How much tax was due from BCF on disposal of its asset?

Select one:

a. R55,750

b. R146,500

c. R56,500

d. R64,250