TEST 1 TYPE QUESTIONS

1) The 100% allowance of manufacturing assets is allowed for which type of companies?

A. Partnerships
B. Small business enterprises
C. Farming businesses
D. None of the above

2) Mr. Bee has been a member of the retirement annuity fund since he was employed.
All his contributions were deductible against taxable income. In November 2022, he
received a retirement lump sum of R960 000. Calculate tax payable on the lump sum
using 2023 tax tables.

A. R120 000
B. R106 200
C. R82 800
D. R195 300

3) ABC a (Small Business Corporation) acquired an office chair valued R5 300 on 1 June
2022, the beginning of the financial year. SARS allows a write-off period of 3 years.
The year-end of ABC CC is 30 May each year. Calculate the wear and tear allowance
ABC claims for the 2023 year of assessment.

A. R7 500
B. R21 200
C. R8 000
D. No answer is correct.

4) The requirements to claim the low-cost additional allowance in terms of section 13

sex are:

A. Taxpayer must own at least 5 units

B. The units must be situated in South Africa
C. The cost of the property must not exceed R350 000
D. All of the above

5) Which of the following is not a characteristic of a Small Business Corporation as

defined in S12E:

A. Gross income for the year of assessment does not exceed R20 million
B. The company must be a public company
C. No shareholder or member of the Close corporation holds any shares or equity
interest in any other company.
D. The company is not a personal service provider defined in the Fourth Schedule.