Kyle is a South African resident, aged 36 years. He owns a bar in Bloemfontein. Due to the good reputation and popularity of his business, Kyle needed to appoint two bouncers to ensure the safety of his customers and to minimise fights. During the 2022 year of assessment one customer had five drinks too many and started a fight with another customer. One of the bouncers tried to control the issue and stop the fight; however, he ended up having two of his ribs broken. The fight was eventually stopped by the other bouncer. Kyle incurred costs amounting to R76 000 to cover the medical expenditure of the bouncer who got injured. Kyle will not be allowed to deducted the R 76 000 when calculating his taxable income.
Kyle is a South African resident, aged 36 years. He owns a bar in Bloemfontein. Due to the good reputation and popularity of his business, Kyle needed to appoint two bouncers to ensure the safety of his customers and to minimise fights. During the 2022 year of assessment one customer had five drinks too many and started a fight with another customer. One of the bouncers tried to control the issue and stop the fight; however, he ended up having two of his ribs broken. The fight was eventually stopped by the other bouncer. Kyle incurred costs amounting to R76 000 to cover the medical expenditure of the bouncer who got injured. Kyle will not be allowed to deducted the R 76 000 when calculating his taxable income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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