TAX3761 Exam Prep
Shared by a Veda learner · Generated with Veda AI
What you'll study, topic by topic
TAX3761 Exam Prep
Sample questions with model answers
Every question in the paper gets a full exam-length answer in the app — organised by marks, the way a topper writes it.
Discuss all the tax implications arising from Singaphezu Kwabanqobi (Pty) Ltd’s transactions for the year of assessment ended on 28 February 2026. For this part, ignore additional information. Include calculations in your discussion.
Show answer outline
Discuss tax implications including VAT and Income Tax calculations.
The full exam-length answer is in the app.
Calculate the adjusted taxable income of Don’t Plagiarize (Pty) Ltd for the 2026 year of assessment. Show all your workings. Reasons are not required except for transaction 4. Ignore additional information for this part.
Show answer outline
Adjusted taxable income calculation includes all relevant income and expenses.
The full exam-length answer is in the app.
Calculate Mr Sanu Kopa’s final tax liability for his 2026 year of assessment. Provide reasons only for NIL amounts.
Show answer outline
Final tax liability includes all income, deductions, and applicable tax rates.
The full exam-length answer is in the app.
Discuss the implications of the discretionary trust established by James Brown and Brad. Include relevant tax considerations.
Show answer outline
Implications include tax treatment of trust income and capital gains.
The full exam-length answer is in the app.
Discuss the implications of the increase in the VAT rate from 14% to 15% from 1 April 2018.
Show answer outline
The VAT increase affects pricing, consumer spending, and business cash flow.
The full exam-length answer is in the app.
Explain the importance of tax compliance for businesses.
Show answer outline
Tax compliance ensures legal operation and avoids penalties from SARS.
The full exam-length answer is in the app.
On 5 November 2025 DP ordered a new mobile freezer trailer manufacturing machine from the United States of America for $510 000. The machine was shipped free on board on 15 November 2025 and arrived in DP’s premises on 25 November 2025. DP installed the machine for R530 000 and started using it on 5 December 2025. The spot rate as at 15 November 2025 was $1 = R17.00 and the average exchange rate was R17.30. DP settled the full purchase price of the machine on 10 December 2025 when the spot rate was $1 = R16.90.
Show answer outline
Calculate costs and implications of machine purchase and installation.
The full exam-length answer is in the app.
Outline the limitations on allowable deductions for businesses.
Show answer outline
Deductions must be incurred in the production of income and not exceed prescribed limits.
The full exam-length answer is in the app.
Explain the concept of gross income in relation to taxation.
Show answer outline
Gross income includes all income received before deductions.
The full exam-length answer is in the app.
Describe the process for obtaining a valid tax invoice.
Show answer outline
A valid tax invoice must include specific details such as seller's info and VAT amount.
The full exam-length answer is in the app.
On 10 October 2025 DP donated five mobile freezer trailers to five churches in East London. These five churches are not registered as Public Benefit Organisations. Further DP donated eight mobile freezer trailers to eight Non-Profit Organizations (NPOs) in the East London area, and DP received s18A certificates from all eight NPOs as they are approved by SARS as Public Benefit Organisations. All these mobile freezer trailers had a unit cost of R43 500 each and a market value of R73 500 each (Provide 2 brief reasons).
Show answer outline
Discuss tax implications of donations to churches and NPOs.
The full exam-length answer is in the app.
Calculate Miss Whay Cheat’s employees’ tax on her bonus for the month of February 2026. You are not required to provide reasons.
Show answer outline
Employees' tax calculated based on bonus and applicable tax rates.
The full exam-length answer is in the app.
Differentiate between tax exemptions and tax deductions.
Show answer outline
Exemptions exclude income from tax, while deductions reduce taxable income.
The full exam-length answer is in the app.
What are the consequences of failing to comply with tax regulations?
Show answer outline
Non-compliance can lead to penalties, interest, and legal action by SARS.
The full exam-length answer is in the app.
Discuss the ethical concerns you have about Mr Moniwa CA(SA), the senior finance manager of Singaphezu Kwabanqobi Pty (Ltd). Refer to additional information.
Show answer outline
Consider implications of misrepresenting vehicle classification for VAT.
The full exam-length answer is in the app.
What documentation is required for VAT transactions?
Show answer outline
Valid tax invoices and required documentation must be obtained.
The full exam-length answer is in the app.
Identify the role of SARS in the taxation system.
Show answer outline
SARS administers tax laws and collects taxes in South Africa.
The full exam-length answer is in the app.
Calculate the underpayment penalty Don’t Plagiarize (Pty) Ltd will be liable for in the 2026 year of assessment. Assume DP did not make a third provisional tax payment.
Show answer outline
Underpayment penalty based on the difference in provisional tax paid versus actual tax liability.
The full exam-length answer is in the app.
What is the corporate tax rate applicable in South Africa?
Show answer outline
The corporate tax rate is 27%.
The full exam-length answer is in the app.
Value of opening stock was R1 470 000 on 1 April 2025.
Show answer outline
Opening stock value for DP is R1 470 000.
The full exam-length answer is in the app.
DP sold 210 mobile freezer trailers at the selling price of R73 500 per unit.
Show answer outline
Total sales from trailers = 210 * R73,500.
The full exam-length answer is in the app.
DP purchased raw materials amounting to R1 300 000.
Show answer outline
Raw materials purchased for DP = R1,300,000.
The full exam-length answer is in the app.
Study it properly — free, in the app
The full Veda Bites deck, complete notes, spaced-repetition flashcards, leveled MCQs, tests and games for this kit — plus Daily Facts and the Arena, every day.