Exam (elaborations)
TAX3702 - ASSIGNMENT 05 SOLUTIONS (SEMESTER 01 - 2022)
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TAX3702 - ASSIGNMENT 05 SOLUTIONS (SEMESTER 01 - 2022)
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TAX3702 ASSIGNMENT 5QUESTION 1
(a) Calculation of Jochim's taxable income for his 2022 year
of assessment
Payment to keep quiet - in connection with knowledge 200 000
Leave due - payment in respect of employment 27 000
No notice payment - connected to employment 90 000
Restraint of trade payment 157 000
Salary (23 000 x 3 + 28 000 x 7) 69 000
Bonus (30 000 x 3/12) 7 500
Employer pension fund contributions (23 000 x 3 x 10%) 6 900
Employer medical scheme contributions (4 035 x 3) 12 105
Local interest 24 000
Foreign dividends 8 887
South African dividends 2 000
Employer donation (100 x 3) 300
Covied 19 vaccinations - not a taxable benefit as it was -
provided to employees in general at their place of work
, Low-interest loan :[50 000 x (4,5% - 2%) x 122/365 + (50 3 471
000 - 50 000/4) x (4,75% - 2%) x 62/365 + (50 000 - 50
000/4) x (5% - 2%) x 28/365]
Travel allowance (5 000 x 7) 35 000
Total kilometres = 103 445 - 88 674) = 14 771
Business kilometres = 2 900
Private travel = 14 771 - 2 900 = 11 871
Cost of vehicle = R220 000
Fixed cost from table = R75 039
Deemed costs
Fixed cost per km (75 039/14 771 x 212/365)
2,951
Maintenance cost
0,532
Fuel cost
1,263
Deemed cost per km
4,746
Actual costs
Wear and tear (220 000/7 x 212/365)
18 254
Finance charges
14 875
Registration cost
3 200
Licence fee
846
Fuel
37 175
Actual cost per km (37 175/14 771)
2,517
Deemed cost is higher, therefore use deemed cost
Business travel (2 900 x 4,746) (13 763) 21 237
unemployment insurance benefits - accrued in current 13 276
year (6 638 x 2)
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