Answer Happy

QUESTION 3 (20 Marks) Sehat (Pty) Ltd, a resident company thatwas formed in 2005, has a 31 March financial year-end. The companydistributed the following amounts/assets to its sole shareholder,Mr Ahmed, on 1 July 2021:  a cash distribution of R1 000 000;  anin specie distribution of trading stock with a market value of R500000 (the trading stock was acquired on 10 April 2021 at a costprice of R300 000); and  an in specie distribution of a buildingwith a market value of R1 500 000 (the building was acquired on 12July 2008 for R1 200 000; the building did not qualify for anycapital allowances). YOU ARE REQUIRED TO: 3.1. Calculate the normaltax consequences arising from the above distributions for Sehari(Pty) Ltd’s 2022 year of assessment. (10 marks) 3.2. Calculate theamount of dividends tax that Sehari (Pty) Ltd is obliged to payover to SARS. (10 marks)