Taxation of Business Entities Flashcards
1
Q
How are sole proprietorships taxed?
A
In the hands of the proprietor
2
Q
How is tax assessed for partnerships?
A
On each partner’s share individually
3
Q
What are the 2 types of partnerships?
A
Ordinary partnership - partners are jointly liable for debt incurred
Limited partnership - partners liability limited to their contributions
4
Q
What is a group of companies?
A
2 or more companies where a controlling group company directly or indirectly holds 70% shares in a controlled group company.
5
Q
What is the tax rate applicable to companies?
A
27%
6
Q
What are the 3 types of trusts?
A
Testamentary trusts
Inter vivos trusts
Special trusts
7
Q
What are the 3 types of trusts?
A
Testamentary trusts
Inter vivos trusts
Special trusts
