Anne is a sole proprietor of Fashion X selling clothing in Cape Town. The current financial year ends on
February The following information relates to the business activities:
Profit before tax of R before taking the following information into account:
Bad debts written off consist of the following:
Trade debtors R
Loan to employee YY R
Employee YY has left the employment and there is no trace of him.
Penalties and interest of R paid to SARS relating to late submissions of tax returns.
Legal Fees to the amount of R was incurred for the following:
Collection of outstanding trade debtors R
Court cases regarding employee claims R
Legal Appeal to SARS R
Prepaid expenditure:
Deposit of R for the purchase of computers in April
Fashion X entered into a new contract with a new service provider on September for a month
period amounting to RThis amount was included in the total telephone expenses for the year
ending February of R
Amy, manager of Fashion X decided to retire early. She was paid R over years.
Salaries of R was paid in the year of assessment.
Advertising of R incurred on I November for the launch of a new ladies clothing range.
Premiums of R paid on insurance policies against severe illness and dreaded diseases.
Doubtful debts in the previous year amounted to R and doubtful debts allowance for the current
tear R
REQUIRED:
Calculate the taxable income for the Year of Assessment after taking into account the deductions.
