2. The following expenses were incurred by Kabo Holdings (Pty) Ltd in respect of transactions...
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Accounting
2. The following expenses were incurred by Kabo Holdings (Pty) Ltd in respect of transactions with non-residence during the year ended 30 September 2015:
P
Purchases of raw materials from Angola 4,099,890
Insurance Premiums 78,908
Technical Advise in respect of a plumbing issue 56,900
Advertising Kabos goods in a Malawian magazine 34,902
Interest on a loan from a Director/Shareholder 55,340
Management fees 230,340
Transportation of goods to South Africa 54,890
Royalties for the right to use a formula by an American Professor 78,900
Consultancy fee paid 46,808
The hiring of a Zimbabwean Artist to entertain staff at the end of year party 78,000
Required
In respect of each of the above expenses state giving reasons, whether Kabo Holdings (Pty) Ltd should withhold tax from the payment to the non-resident and, if tax should be withheld, the rate which will apply. (10 marks)
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