To develop knowledge and skills relating to the tax system as applicable to individuals, single companies, and groups of companies using South African Tax System.
After completing this examination paper students should be able to:
- Explain the operation and scope of the South African tax system and the obligations of tax payers and/or their agents
- Explain and compute the income tax liabilities of individuals
- Explain and compute the income tax liabilities of companies
- Explain and compute the chargeable capital gains arising on companies and individuals
- Explain and compute the effects of value added tax on incorporated and unincorporated businesses
This syllabus introduces candidates to the subject of taxation and provides the core knowledge of the underlying principles and major technical areas of taxation, as they affect the activities of individuals and businesses.
In this syllabus, candidates are introduced to the rationale behind and the functions of the tax system. The syllabus then considers the separate taxes that an accountant would need to have a detailed knowledge of, such as income tax relating to employment, independent trades and investments, the tax liability of companies, the value added tax liability of businesses; and chargeable capital gains arising on disposals of assets by both individuals and companies.
Having covered the core areas of the basic taxes, the candidate should be able to compute tax liabilities, explain the basis of their calculations, apply tax planning techniques for individuals and companies and identify the compliance issues for each major tax through a variety of business and personal scenarios and situations.