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.
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- Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import– export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco’s car broke down. At the repair shop, Marco learned that his car’s engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his bank accountto cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. He does not use his car for any business travel. After considering his options, Marco decides to take $2,000 from the partnership for the repair and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day.1. Is Marco behaving ethically? Why or why not?2. Who is affected by Marco’s decision?3. What other alternatives might Marco…Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import–export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco's car broke down. At the repair shop, Marco learned that his car's engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his bank account to cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. He does not use his car for any business travel. After considering his options, Marco decides to take $2,000 from the partnership for the repair, and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day. Is Marco behaving ethically? Why? Who is affected by Marco's decision? What other alternatives might Marco…MeiMei is a professional accountant employed by The American Company Bhd since Mei really needs this job as he has a big family with five young children and jobs like this one is hard to come by in the area where he lives along with his family. This company deceptively avoids paying the mandatory import duties on the motorcycles it imports from Italy in November 2019. The President of the company, Steven asked MeiMei to prepare and provide him with a statement of the duty avoided on the purchase of these motorcycles for the past three years. The President also asked that MeiMei sign off this statement. The statement that MeiMei prepared and presented to the President showed that $11,800,000 in customs has been avoided by the company in the last three years. Since MeiMei prepared the statement, he was having trouble sleeping at night. i)Explain the ethical issues in the above case. ii)Should MeiMei quit the job and report this situation to the regulatory bodies? Justify your answer.
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- Miguel, a 16-year old mechanic’s apprentice, borrowed $3,000 from his next door neighbour, Jono, by telling him that he was 20 years old and had a good, stable income. The loan was payable in three equal fortnightly payments. After the first payment, Miguel stopped paying Jono. Jono wanted to bring a legal action against Miguel but when he discovered his real age, he decided instead to initiate an action in tort for deceit against the latter. Will Jono likely be successful in his action in tort for deceit against Miguel? Explain your answer. (Maximum 400 words)Peter Pan is a self-employed delivery driver. On one delivery trip, Peter Pan received a $100 ticket for being double parked in violation of city traffic laws. In an attempt to avoid the ticket, Peter Pan slipped the parking enforcement officer a $20 bill to "look the other way". Unfortunately, the parking enforcement officer took the $20, but still gave Peter Pan the ticket. How much of the $120 can Peter Pan deduct as a business expense?Kwame Lee has been made redundant from a managerial position in an oil company in Trinidad where he had worked for the past fifteen years. His plan is to go into private practice as an environmental engineer consultant working in Trinidad and the Eastern Caribbean countries. Initially he was unsure whether he should operate as a sole proprietor, incorporate a company in which he will be the sole director; or operate in partnership with a former school friend. However, he was advised that a partnership would be the best structure. Kwame intends to employ staff and invest excess cash from the business in purchasing stocks/shares. The stocks/shares will be purchased by the partnership but will be held in trust for Kwame and his children. Required: Advise Kwame of the following: 1) The direct taxes and indirect taxes that he will need to consider, the tax filing obligations which he is required to fulfil for compliance, the powers of the Revenue Authority and his responsibility as a…
- Based in Australian law Joseph Shrestha, the holder of a Nepalese passport and relevant working visa, arrived in Australia from Nepal in January 2016. He started work as an administrator in a Sydney hospital. On 10 July 2018 he travelled back to Nepal for personal reasons and worked in odd jobs until 1 November 2018 when he returned to Sydney and resumed his position at the hospital. While in Nepal he continued to maintain the apartment which he had bought in Sydney and his Australian bank account. He was on "leave without pay" from his job at the hospital. During the 2018/19 income year Joseph was paid $25,000 for his work in Nepal and $35,000 for his work as an administrator in Australia. Nepalese tax of $3,000 was deducted from his salary. He was paid a bonus of $2,800 from Sydney hospital on 5 July 2018 for his work performed during April to June 2018. He also received $2,000 interest on the savings in his Australian bank account and a fully franked dividend of $700 from his share…Trent is broke and needs cash immediately to pay off a debt he incurred. He visits the local pawn shop and leaves his grandfather’s watch in exchange for $100.00 cash. This is an example of what type of loan? Multiple Choice Unsecured loan Chattle loan UCC loan Secured loan The Environmental Defense Fund, an environmental watchdog group, files a lawsuit to prevent future open-pit coal mining in West Virginia. This type of lawsuit is known as a Multiple Choice wrongful-damage suit. negligence suit. citizen suit. nuisance suit. All of the following may be used as collateral for a secured transaction except Multiple Choice Future profits of a business A promissory note A patent Seeds and cropsRicky signed a contract to sell his slightly-used Suzuki Vitara Golf for $15,000 to an old friend Boris, after the latter threatened to tell Ricky's wife that Ricky is a discharged bankrupt. The vehicle still has a market value of $24,000. Boris told Ricky that if he didn’t sell his car to him, he will could always organise some of his former associates, who are all convicted felons, to visit Ricky and force him to do so. Advise Ricky on whether he has any remedies to have the contract declared void and get his car back