College of Business and Economics

School of Accountancy

Department of Accountancy

Taxation 3
ADIA01 / S3PACQ3
Mr Carl Anschutz (Senior Lecturer)

Ms Sinazo Bulana-Xaba (Assistant lecturer)

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1. INTRODUCTION

1.1 Welcome

Welcome to TAXATION 3!

Congratulations on making it this far in your studies and reaching the final year of your degree.
We wish you all the best for the coming year and all the success in your future studies.

As your lecturers, we wish you all the best for the year. With the correct attitude and enough
dedication (to your studies), you WILL be successful in this year.

Our role is to assist you with your studies. We will ensure that we are always prepared for the
lectures (whether online or on campus), and on time for class. We are available for consultations
via Zoom or Teams as well as on campus. Please send an email to the relevant lecturer to
schedule an appointment or consult during the consultation hours as per the learning guide.

As students, you are expected to attend all lectures (whether online or on campus), to prepare
in advance for assessments and to consult if there is anything that you are struggling with. Please
note that all assessments are closed book assessments, and no notes or books may be used
during assessments.

Mutual respect for each other, hard work and dedication will ensure that our year is amazing,
and that you are successful in your studies in this year.

1.2 School/Department information

 Director of the school:

o Prof Ben Marx
 School contact details:
o 011 559 3086
 Head of the Department:
o Prof Ahmed Mohammadali Haji
 School secretary:
o Ms Charmaine Viljoen
 Department contact details:
o 011 559 3086

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1.3 Lecturer information

Mr Carl Anschutz
Office C Ring 721
Telephone number: (011) 559-3902
E mail address: [email protected]

Mrs Sinazo Bulana-Xaba

Office C Ring 729
Telephone number: TBA
E mail address: [email protected]

Introduction videos for each lecturer will be available on Moodle… released on Thursday
mornings.

1.4 Purpose and use of this learning guide

 The purpose of this learning guide is to provide students with important administrative,
organisational and module information and as such, a frame of reference and road map
to guide students in their planning and preparation in this module through the year. It
is of critical importance that students continually refer to the learning guide throughout
the year. Should there be changes to any information in the learning guide, it will be
posted on Moodle.
 The learning guide and textbook are not substitutes for lectures/tutorials. The learning
guide, textbook, other learning material, lectures, assessments and other activities
comprise of an inclusive and integrated learning experience aimed at achieving the
outcomes of this module. Attendance at lectures is crucial (whether online or on
campus), as lectures do not only allow for more guidance and direction regarding the
scope of the module, but also allows for meaningful engagement which is expected to
facilitate an in-depth understanding of the core issues covered in the module.

1.5 Student conduct (academic honesty, rules of engagement, etc.)

 Refer to Moodle for the undergraduate policy, the student code of ethics, the
Department of Accountancy Teaching and Learning process, and the student
communications and grievances process.

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2. MODULE AND PROGRAMME INFORMATION

2.1 The place of the programme in the academic disciplinary progression

Taxation 3 for ADIA002 or S3PACQ3 is a year course, which combines both the Taxation 3A and 3B
syllabi.

Students who successfully complete their B Com Accounting degree with an average of 60% are
eligible to apply for the Honours in Taxation or the Honours in Internal Auditing, or BCTA (to bridge
into PGDAs (CTA)) or PGD Financial Management.

More information regarding this will be provided to students during the course of the year.

2.2 Module name, code, NQF level, NQF credits and pre-requisites
Taxation 3

ADIA:
Module code ADIA002
Module name Taxation
Pre-requisites for module Diploma
Module NQF level 7
NQF Credits 30
Duration of module Year

PAC:
Module code S3PACQ3
Module name Taxation
Module NQF level 7
NQF Credits Non-credit bearing
Duration of module Year

2.3 Module purpose, outcomes and assessment criteria

Purpose of the module

The purpose of this module is to enhance a student’s understanding of the controls involved in
the daily operations of any business.

Module outcomes
At the end of this module, you should be able to do the following:
 Analyse amounts to be included in gross income by applying the definition of “gross
income”
 Recognise the various components of the gross income definition defined in s 1 of the
Income Tax Act (ITA) with reference to relevant case law. A student can be required to
answer long/short discussion questions, determine whether an amount received or

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 accrued must be included or excluded in gross income, and provide a reason for the
treatment.
 Analyse amounts exempt from income tax by applying the relevant section of the Income
Tax Act.
 Correctly reflect the exempt amount in the tax calculation/tax framework.
 Discuss and/or apply in a calculation:
- Whether an amount is an allowable deduction from income in terms of the general
deduction formula {s 11(a) and s23 of the ITA};
- Apply and discuss specific deductions in the ITA. Discussion refers to stating the
theory lectured and making it applicable to the given scenario in order to reach a
conclusion.
 Explain and calculate allowable deductions for Income Tax purposes by applying the
general deduction formula and special deductions;
 Explain and calculate capital allowances for Income Tax purposes;
 Apply the income tax principles regarding trading stock;
 Identify situations subject to capital gains tax and calculate the taxable amount in terms
of the relevant provisions in respect of assets acquired prior to and after 1 October 2001,
and;
 Explain and calculate the taxable income and income tax payable by both individuals and
companies;
 Discuss and calculate the Value Added Tax implications of an enterprise making taxable
and exempt supplies;
 Explain and calculate dividends tax;
 Discuss and/or apply in a calculation:
- whether the cost of acquiring an asset may be claimed as an allowable deduction
from income, by: identifying the type of asset acquired;
evaluating whether the asset acquired qualifies for a specific capital allowances a
calculating the amount of the capital allowance using the rates of the specific
section.

Upon successful completion all the course work in the B. Com (Accounting) Degree
program, students will be eligible to enter the B Com Honours in Taxation or B Com
Honours in Internal Auditing and various other professional qualifications.

3. ADMINISTRATIVE AND ORGANISATIONAL INFORMATION

3.1 Prescribed course material (textbook, etc.)

Course material includes the following:

 Notes on South African Income Tax 2024 – 43rd Edition, P. Haupt [H&H Publication]
 Tax Workbook 2024 – 32nd Edition, LD Mitchell et al [ LexisNexis]

Alternative Textbooks (not prescribed) but useful to refer to should you require alternative explanations:

 SILKE: South African Income Tax (2024) Stinghling, Koekemoer, et al [LexisNexis]

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  Questions on SA Tax – 25th edition 2024 [JUTA]
 A Student approach to Income Tax – Business Activities (2024) Bruwer et al [Lexis
Nexis]
 Learning guide
 Lecture guides
 Lecture slides
 Supplementary reading:
- SARS website
- Newspaper articles

 Other useful question banks:

- Graded questions on Income Tax in South Africa – Kevin and Lindsay Mitchell
2024
- Introductory Questions on SA Tax – 7th (2024)
- Advanced Questions on SA Tax – 9th edition (2024)

Lecture timetable [blended learning module]:

Online material release day Thursday The material will be released on Moodle every
Thursday before the week’s lecture.
Campus lectures Tuesday 11:20 – 13:00 in B Les 100

Please see below the complete third year blended learning timetable for each week:

The release day for the online content will be communicated by each of the subjects individually.
For Taxation 3A the content will be released every Thursday at 08:00.

3.2 Work schedule for the semester/year

Semester 1:

Date Day Subject Lecturer

Semester 1: 12 February 2024 – 21 June 2024
February 2024
8 Thursday Online release of VAT lecture
13 Tuesday Introduction to TAX03A3
VAT lecture
15 Thursday Online release of content on Moodle:
 Framework
 Gross income
 Exempt income

20 Tuesday  Framework

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  Gross income
o Definition
o Special inclusions
 Exempt income
 Release of #TAG Challenge 1

22 Thursday Online release of content on Moodle

 Deductions
o General deductions
o Special deductions

27 Tuesday General deductions

Special deductions
29 Thursday Online release of content on Moodle
 NIBT

March 2024
5 Tuesday NIBT – calculating taxable income from accounting
records
8 Friday Accounting Assessment 1
11 Monday No lectures due to assessments
Taxation Assessment 1
13 Wednesday Cost and Management Accounting Assessment 1
14 Thursday Online release of content on Moodle
NIBT (2nd lecture)
15 Friday Governance and Control Assessment 1
19 Tuesday NIBT (2)
– more advanced examples of calculating taxable
income of companies starting with accounting profit
Accounting Sick Assessment 1
19 Tuesday Taxation Sick Assessment 1
20 Wednesday Cost and Management Accounting Sick Assessment 1
21 Thursday Public Holiday: Human Rights Day
22 Friday University Holiday
Mid-semester Recess 23 – 31 March 2024
April 2024
1 Monday Public Holiday: Family Day
2 Tuesday Governance and Control Sick Assessment 1
4 Thursday Online release of content on Moodle
 Capital Allowances (1)
o Repairs [11(d)]
o Wear and tear [11(e)]
o Disposed assets [11(o)]
o Special depreciation allowances
 12B

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  12C
 Process of manufacture
 Similar process
 12E

9 Tuesday Capital allowances (1)

11 Thursday Online release of content on Moodle
 Capital Allowances (2)
o Building allowances
 13(1)
 13quat
 13quin
 13sex
o Recoupments
o Leasing

16 Tuesday Capital allowances (2)

18 Thursday Online release of content on Moodle
 Capital gains tax (CGT)(1)
o Basic framework
 Capital losses
 Calculation decision tree
o Capital gain
o Capital loss
o Asset
o Disposal

23 Tuesday CGT
25 Thursday No new material released due to assessment week
30 Tuesday No lectures due to assessment week
30 Tuesday Cost and Management Accounting Assessment 2
May 2024
1 Wednesday Public holiday – Worker’s Day
No lectures
3 Friday Governance and Control Assessment 2
7 Tuesday Taxation Assessment 2
No lectures due to assessments
8 Wednesday Accounting Assessment 2
9 Thursday Online release content on Moodle
 Capital gains tax (CGT)(2)

CMA Sick Assessment 2

10 Friday Governance and Control Sick Assessment 2
14 Tuesday CGT (2)

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 Taxation Sick Assessment 2
15 Wednesday Accounting Sick Assessment 2
16 Thursday Online release of content on Moodle
 Trading Stock
 Dividends Tax

21 Tuesday Trading stock

Assessed losses
Dividends tax
23 Thursday No new material released
FINAL revision lecture
28 Tuesday Block week – no lectures
June 2024
16 Sunday Public Holiday: Youth Day
17 Monday Public holiday – due to Youth Day on a Sunday
Block week 27 – 31 May 2024
June assessments 1 – 22 June 2024
3 Monday Accounting Assessment 3
7 Friday Cost and Management Accounting LAO
10 Monday Governance and Control Assessment 3
14 Friday Taxation 3A LAO
Winter recess 22 June – 7 July 2024
First semester supplementary assessments 8 – 12 July 2024

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3.4 Class attendance

A blended learning approach will be used in 2024. Campus lectures will be presented each
Monday (as stipulated in the learning guide), and online content will be released each Thursday.

You need to take the responsibility to watch the videos of the online content BEFORE you attend
a lecture on a Tuesday morning at 11:20.

It is your responsibility to attend the on-campus lectures. Please note that no videos will be
shared for lectures presented on campus.

3.5 Moodle access and #TAG project

 All modules, slides, question banks and pre-reading will be available on Moodle from the
Thursday BEFORE the unit is lectured. This gives all students enough time to download and
watch the content before the lecture on the Monday.
 All information regarding the third-year project (namely #TAG) will be communicated and
available on Moodle.

Please see below the #TAG release and due dates for semester 1.

Release Governance Accounting Taxation due

Assignment CMA due date
date due date due date date
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Challenge one 8 April 2024 28 March
February 8 April 2024 27 March 2024
(Group) 2024
2024
Not Applicable
Challenge two 8 April
– presentation 24 May 2024 17 May 2024 22 May 2024
2024
in July
TBC
Governance
Group
presentation
presentations
Challenge 26 August
22 July
three 2024 TBC TBC TBC
2024
(Group)
Challenge 9 September
22 July
four 2024 TBC TBC TBC
2024
(Individual)

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3.6 Consulting times

Lecturers will be available for online consultations, please schedule a meeting by sending an
email:

Mr CD Anschutz:
On campus consultations are as follows:
Monday: 14:00 – 15:30
Tuesday: 13:15 – 14:30
Wednesday: 10:00 – 14:00
Request Zoom consultation via email

Ms S Bulana-Xaba:
On campus consultation times are as follows:
Monday: 09:00 – 11:30
Tuesday: 09:00 – 11:30
Thursday: 12:00 – 14:00 (Via Zoom)

Should you require a face-to-face consultation during any other time, please make an appointment
with the relevant lecturer using their email address.

3.7 Assessment programme for the semester/year

Assessment schedule/opportunities for ADIA01 /S3PACQ3:

Assessment Topic Date Assessment method

opportunity
Assessment 1 All modules covered up to 11 March 2024 Assessment on
assessment 1. campus
Sick Assessment 1 All modules covered up to 19 March 2024 Assessment on
assessment 1. campus
Assessment 2 All modules covered up to 6 May 2024 Assessment on
assessment 2. campus
Sick Assessment 2 All modules covered up to 13 May 2024 Assessment on
assessment 2. campus
Assessment 3 All modules covered up to 14 June 2024 Assessment on
assessment 3. campus
Sick Assessment 3 All modules covered up to TBC Assessment on
assessment 3 campus
Assessment 4 All second semester modules 19 August 2024 Assessment on
covered up to assessment 4 campus
Sick Assessment 4 All second semester modules 27 August 2024 Assessment on
covered up to assessment 4 campus
Assessment 5 All second semester modules 30 September Assessment on
covered up to assessment 5 2024 campus

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 Sick assessment 5 All second semester modules 14 October Assessment on
covered up to assessment 5 2024 campus
Final Exam All second semester modules 4 November Assessment on
covered up to Final 2024 campus
Examination
Supplementary All second semester modules TBC Assessment on
exam covered up to final campus
#TAG 1 and #TAG First semester modules See year Project/Assignment
2 program above
#TAG 3 and #TAG Second semester modules See year Project/Assignment
4 program above

ALL assessments will be an in-venue assessment. This means that you will have to be present at
campus to have a sit down, closed book, and assessment in an allocated venue. There will be no on-
line assessments made available for the in-venue assessments. Therefore, it is imperative that you
familiarise yourself with a closed book assessment from assessment opportunity 1.

The assessment program for all third-year subjects is as follows:

Subject 1 2 3 4 5 Final
Governance 15 March 3 May 10 June 13 August 2 October 29 October
and Control 2024 2024 2024 2024 2024 2024
SICK: 2 April 10 May TBC 23 August 10 October TBC
2024 2024 2024 2024
1 2 Final
Taxation 11 March 6 May 14 June
3A 2024 2024 2024
1 2 Final
Taxation 19 August 30 4
3B 2024 September November
2024 2024
SICK: 19 March 13 May TBC 27 August 14 October TBC
2024 2024 2024 2024
Accounting 8 March 8 May 3 June 21 August 7 October 25 October
2024 2024 2024 2024 2024 2024
SICK: 18 March 15 May TBC 28 August 16 October TBC
2024 2024 2024 2024
Cost and 13 March 30 April 7 June
Management 2024 2024 2024
Accounting
SICK: 20 March 9 May TBC
2024 2024
Financial 16 August 4 October 8
Management 2024 2024 November
2024
SICK: 26 August 11 October TBC
2024 2024

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3.8 Composition/calculation of final mark

Assessment schedule/opportunities for ADIAO1 / S3PACQ3:

Assessment opportunity Weighting

Assessment 1 15%
Assessment 2 15%
Sick assessment 1 and 2
Assessment 3 17%
Assessment 4 15%
Assessment 5 18%
Sick assessment 4 and 5
Project/objective tests (First and Second semester – 15%
Challenges 1 – 4)
Class attendance 5%
Final Assessment 100%

3.9 Assessment Criteria

 The mark that a student must obtain at the half year point to continue with the second
semester is 40%; and
 The mark that a student must obtain as a year mark to get entry into the final assessment
opportunity is 40%.
 A student must have a final mark of 50% to pass the module,
 The final mark will compose of 60% year mark, and 40% exam mark.

3.10 Tutorials

There are tutorials every Friday on Microsoft Teams. Details will be posted on Moodle.

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 3.11 Application for a sick assessment

DEPARTMENT OF ACCOUTANCY
APPLICATION FOR REPLACEMENT ASSESSMENT OPPORTUNITY(S) PROCESS

In order to be considered for the writing of a supplementary assessment due to the original assessment being
missed is set out below:
 Complete Section 1 of the Application for Replacement Assessment Opportunity form with all your
personal details;
 If you were ill or hospitalized, the medical practitioner must complete Section 2 and a valid sick note
must be attached to the application
 In the case of a death in the family the following documentation is required:
o Death certificate
o Proof of family connection
 In the event of the attendance of a funeral:
o Funeral programme;
o Contact details of funeral parlor to confirm funeral proceedings; and
o Letter from family to confirm attendance of funeral stating name and identify number.
 For religious or traditional reasons:
o Letter from a registered traditional healer or religious leader detailing the student name, date
and reason.
 All supporting documentation must be verifiable.
 The application form together with supporting documentation must be submitted in hard copy to Ms
Faith Ximba in C738 within seven (7) calendar days from date of assessment.
 Submitting times Mon-Thursday 9:00am-12:00pm Friday 9:00am-10:30am
 Failure to submit a sick test application will result in a student being ineligible to write the replacement
assessment.
 Failure to submit valid supporting documentation may result in the application being turned down.
 Should any documentation found to be falsified or amended with intent to defraud through the
verification processes, the lecturer reserves the right to institute proceedings with judicial services.

Please take note of the following from the Assessment Policy of UJ:
Applications for exceptions may only be considered under the following circumstances with the
appropriate supporting documentation:
(a) Serious medical condition or extended illness period;
(b) Death in the family or extended family;
(c) Exceptional circumstances beyond the control of the student (fire, flood, accident, etc.).

The Dean, in consultation with the relevant Head of Department, may consider this request if the
appropriate supporting documents are provided and the circumstances warrant the request for an
exception.

All applications and submitted documents will be audited; and if found fraudulent, the student will be sent
for disciplinary action and may be expelled.

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 DEPARTMENT OF ACCOUTANCY
APPLICATION FOR REPLACEMENT ASSESSMENT OPPORTUNITY(S)
SECTION 1 TO BE COMPLETED BY THE STUDENT
NAME AND SURNAME
TITLE
STUDENT NUMBER
EMAIL ADDRESS
CELLULAR NUMBER
ADDRESS DURING
STUDIES POSTAL CODE
MODULES REPLACEMENT MODULE MODULE CODE DATE OF TEST
ASSESSMENTS ARE BEING APPLIED FOR
MODULE MODULE CODE DATE OF TEST

NAME OF LECTURER(S)
REASON FOR APPLICATION

DATE OF APPLICATION
SIGNATURE OF STUDENT

SECTION 2 TO BE COMPLETED BY A MEDICAL PRACTITIONER

TITLE, INITIALS AND SURNAME:
REGISTERED PRACTICE/PROFESSIONAL
COUNCIL NUMBER:
CONTACT NUMBER:
I HEREBY CONFIRM: that I examined the abovementioned patient on
(date)
And that the following diagnosis was made:

FURTHERMORE (PLEASE MARK THE I am convinced that the patient is/was not
APPROPRIATE BLOCK WITH AN X) able to write test(s)/exam(s) on the following
date(s) (date)
I cannot, with certainty, say that the patient
is/was not able to write test(s)/exam(s) on
the following date(s) (date)
YOU ARE KINDLY REQUESTED TO PLACE
AN OFFICIAL STAMP OF YOUR MEDICAL
PRACTICE ON THE FORM OR TO
ATTACH A LETTERHEAD OF THE
MEDICALPRACTICE WITH YOUR
SIGNATURE THEREON.

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SIGNATURE OF MEDICAL
PROFESSIONAL
DATE
THE FINAL DECISION AS TO WHETHER THE STUDENT IS/WAS ABLE TO WRITE A TEST/EXAMINATION
RESTS WITH THE DEPARTMENT

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