Let's break down each of your questions related to the taxable income calculation for TESLA Ltd. to provide clarity on the calculations and rationale used:
1. Sales R282,500,200 & Interest R5,160,000:
The amounts for sales and interest are not explicitly provided in the information you have, but they were likely derived from other parts of the financial records or previous periods. If this is a revision or continuation from prior years, ensure you trace these back to the company’s financial statements for consistency.
2. Cost of upgrade: R275,000:
This amount appears to be a cost that has not been explicitly mentioned in the original information provided. It's possible this amount relates to improvements or additional costs incurred on an asset that qualified for a tax depreciation allowance under s 12C. If not specified, this could be sourced from the company's internal records.
3. Machine E moving costs: R120,000:
There is indeed no explicit information regarding "Machine E." This may refer to a cost associated with moving another machine to its operational location and might be a part of the unknown internal transactions or financial setup. Verify with internal accounting records for accuracy.
4. Foundation relating to machine R50,000:
This cost, similar to others, lacks explicit mention in the information provided. It might relate to the costs incurred in the foundation work or preparation necessary for the installation of equipment. Check the capital expenditure records of the company or relevant invoices to validate.
5. Lease Premium of R500,000:
The lease details you mention, including duration and start dates, are typically derived from leasing agreements. The lease period of 20 years should be explicitly stated in the agreement, which likely supports why the premium was averaged over 20 months. Always refer to the contractual documents for exact terms.
6. R20,000,000:
This figure should represent the total eligible cost or a standard cost base for a building or improvement recognized by the tax authority for depreciation purposes. It might have been taken from prior financial records or some established norm for similar properties. Validate with historical documents for clarity.
7. Excess cost on factory building: R23,000,000:
The R23,000,000 cost seems to reflect the overall investment in the factory, compared to an estimated standard or allowable cost. The 5% likely comes from the tax legislation that dictates depreciation rates for industrial buildings; this should be derived from the Income Tax Act. Ensure you check the latest statutory allowances to confirm these figures.
8. Learnership Agreement: R50,000:
This amount typically represents a standard credit or benefit associated with registering learnership programs as per s 12H of the Tax Act. The details about specifics regarding learner qualifications or eligibility would typically be addressed in the tax legislation. Review the exact conditions under this section for compliance.
9. Salaries and wages correction:
The calculation you provided is indeed correctly stated; however, for clarity:
- The calculation should be: R33,344,759 - R90,000 (restraint payment) - R25,000 (learnership benefit) = R33,229,759.
- It appears your confusion might stem from interpreting the operations noted; it indeed is correct as shown in the solution.
In conclusion, to ensure accuracy for tax submissions, always cross-reference any allowance figures with the financial statements, tax codes, and internal records. For each deduction, understand the supporting documentation and legislation basis for clarity, and consult with a tax professional when in doubt.
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