Exam (elaborations)
Tax portifolio
- Institution
- University Of South Africa (Unisa)
Well explained questions
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MENU Started on Sunday, 9 July 2023, 3:25 PM
State Finished
Completed on Sunday, 9 July 2023, 4:24 PM
Time taken 59 mins 41 secs
Question 1
Complete
Not graded
I hereby declare that this is my own work. I have not shared my work or screenshots of my assignment or any form of my assignment with
anyone. I have not had anyone or any resource assist me to do this assignment.
Select one:
True
False
Question 2
Correct
Marked out of 1.00
Which one of the following institutions is not an exempt institution in terms of s10 of the Income Tax Act?
a. a running club
b. a registered political party
c. a private school That’s correct, well
done!
d. a church
e. the Government of South Africa
s10 encompasses non profit organisations as well as other entities/parties specifically mentioned in the section.
,Question 3
Correct
Marked out of 1.00
MENU
A taxpayer is 62 years old and a provisional taxpayer. The taxpayer's 2021 year of assessment was assesed on 10/01/2022 and indicated
taxable income of R437 965 which included a withdrawal lumpsum benefit of R17 237. The 2020 year of assessment was assessed on
09/12/2021 and indicated taxable income of R360 051. The 2019 year of assessment was assessed on 21/11/2020 and indicated taxable
income of R265 161. The taxpayer paid employees tax amounting to R16 767 for the 2022 year of assessment. Calculate the minimum
second provisional tax payment the taxpayer needs to make (in order to avoid an understatement penalty) for the current year of
assessment. Base your calculation on the information provided.
a. (((((R437 965 - R17 237) - R337 800) x 31%) + R70 532) - R15 714) / 2
b. None of the options are correct.
c. (((((R437 965 - R17 237) - R337 800) x 31%) + R70 532) - R15 714) - R16 767 That’s correct, well
done!
d. ((((R437 965 - R17 237) - R337 800) x 31%) + R70 532) / 2
e. ((((R437 965- R337 800) x 31%) + R70 532) - R15 714) / 2
Remember the calculation relates to the entire year. Did you take the rebates as well as the withdrawal lmupsum benefit into account?
Question 4
Correct
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A taxpayer (42 years old) is a full-time employee. The following information relates to the taxpayer's employment for the month of May:
-Salary: R13 400
-Performance bonus: R8 040. The performance bonus accrued to the taxpayer in February 2021 but was only paid to the taxpayer in May
2021.
-Provident fund contributions: R1 474. The taxpayer solely made contributions to the provident fund.
Calculate the employees tax which the taxpayer's employer should withhold for the month of May.
a. [A ((R13 400 x 12 x 18%) - R15 714) / 12]
[B (((R13 400 x 12) + R8 040) x 18%) - R15 714) - ((((R13 400 x 12) x 18%) - R15 714) / 12)]
The final answer is the results of A + B.
b. [A (R13 400 - R1 474) x 12 x 18%) / 12]
[B R8 040 x 18%)
The final answer is the results of A + B.
c. [A ((R13 400 - R1 474) x 12 x 18%) - R15 714) / 12] That’s correct, well
[B ((((R13 400 - R1 474) x 12) + R8 040) x 18%) - R15 714) - ((((R13 400 - R1 474) x 12) x 18%) - R15 done!
714)]
The final answer is the results of A + B.
d. None of the options are correct.
e. [((R13 400 + R8 040 - R1 474) x 12 x 18%) / 12]
The employees tax on the performance bonus (annual amount) should be calculated separately and then added to the employees tax on the
monthly amounts. Remember to take the retirement contributions into consideration for your balance of remuneration.
, Question 5
Correct
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MENU
A taxpayer received a lump sum from a provident fund which is not a government fund, on retirement. Which of the following are allowed to
reduce the lump sum before it is taxed? (i) any amount transferred to a retirement annuity fund (ii) contributions that have been allowed to
the provident fund (iii) two thirds of the lump sum (iv) any amount represented by symbol A in the government fund formula.
a. (i) and (ii)
b. All of the amounts listed can reduce the lump sum
c. (i) That’s correct, well
done!
d. (iv) and (iii)
e. (i), (ii) and (iii)
Please revist paragraph 5 of the second schedule for allowable deductions.
Question 6
Correct
Marked out of 1.00
A taxpayer died during the current year of assessment, they owned a house in Alaska that was sold for the equivalent of R2 020 000. The
house was inherited by the taxpayer from their grandmother, who was ordinarily resident in South Africa, all their life. The mortgage loan on
the property with a rand equivalent of R729 560 was repaid by the executor. The taxpayer had an accrual claim of R500 000 in favour of their
spouse. On their date of death the taxpayer had a bank balance of R40 000. Calculate the total deductions that would be allowed to be
deducted from the gross value of the taxpayer's estate for estate duty purposes.
This is a numeric answer do not use any letters eg. If your answer is nil use "0". Do not use a R sign. Do not use any decimals (round off all
numbers to no decimal places).
Answer: 1229560
Correct!
The accrual claim, the mortgage paid and if the taxpayer has a bank overdraft, these can all be deducted from the gross value of the estate
for estate duty purposes.
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