Mr Generous is a South African resident and contacted you as his tax practitioner to assist him in completing his taxable income calculation for the 2023 year of assessment. Mr Generous calculated his taxable income as R950 000 in respect of the 2023 year of assessment, excluding the following transactions: On 31 December 2022, he donated R100 000 to the SPCA, a registered public benefit organisation. The SPCA issued him with a valid section 18A receipt. He also donated R10 000 to his church, which is not registered as a public benefit organisation, on 23 March 2023. On 4 January 2023, he bought his wife a new car worth R 200 000 for her birthday. Calculate Mr Generous' S18A deduction for the 2022 year of assessment.

Mr Generous is a South African resident and contacted you as his tax practitioner to assist him in completing his taxable income calculation for the 2023 year of assessment. Mr Generous calculated his taxable income as R950 000 in respect of the 2023 year of assessment, excluding the following transactions: On 31 December 2022, he donated R100 000 to the SPCA, a registered public benefit organisation. The SPCA issued him with a valid section 18A receipt. He also donated R10 000 to his church, which is not registered as a public benefit organisation, on 23 March 2023. On 4 January 2023, he bought his wife a new car worth R 200 000 for her birthday. Calculate Mr Generous' S18A deduction for the 2022 year of assessment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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