NAME: KHAOGELO

SURNAME: RAPHIRI
STUDENT NO: 68849281
MODELU: LSB2605
ASSIGNMENT: 2

2.1
 – Requiring taxpayers to make periodic tax payments, which payment may be made either monthly
(in the case of PAYE) or bi-annually (in the case of provisional tax).

- Requiring taxpayers to file tax returns.

- Imposing penalties for the non- payment of taxes and the failure to file returns.

2.2
- The amount that is sought to be deducted (the expenditure or loss) should have been
incurred during the relevant tax year.
- The amount must not be of capital nature (capital expenditure and capital losses are not
deductible under the general deduction formula).
- The amount of expenditure or loss must have incurred in the production of income in
other words the purpose of the expenditure or loss must have been incurred with a view to
producing (earning) income.
- The amount (of expenditure or loss) must have been laid out or expended for the purpose
of trade. In other words, only amount incurred while conducting a business are deductible.
Amounts expended in pursuit of for instance a hobby are not deductible.

2.3
- Usually, companies are taxed at rate of 28%, regardless of how much the company earns.
Small businesses, by contrast, are taxes at a progressive rate (similar to the manner in which
individuals are taxed). In other words, the less the small business earn, the taxes it pays
- Small business corporations are allowed at 100% write-off of all plant or machinery used in
a manufacturing or similar process in the tax year in which the plant or machinery was
brought into use for the first time.
-Small business corporations are also given an accelerated write-off allowance for
depreciable assets (other than manufacturing assets).
2.4
- Any person who derives income from carrying on a trade
-All companies

REFERENCE
LEGAL ASPECTS OF SMALL BUSINESSES STUDY GUIDE

PLAGIARISM DECLERATION
I khaogelo Raphiri student no 68849281 declare that this is my own original work. Where
secondary material has been used (either from a printed source or from the internet), this
has been carefully acknowledged and referenced in accordance with departmental
requirements. I understand what plagiarism is and I am aware of the pertinent policies in
this regard. I have not allowed anyone else to borrow or copy my work.