Summary
Summary - Taxation of Individuals
- Course
- Taxation of Individuals
- Institution
- Boston City Campus And Business College (boston)
Providing an weekly summary of the topic covered in the module
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Teaching and Learning ActivityModule: Taxation of Individuals (HTAX230-1)
Week number (Date): 8
Unit covered: Unit 6 (Chapter 8)
Instructions:
To enrich your learning experience at Boston even further, and to ensure that you are exposed to a
variety of resources in this module, announcements will be posted every week containing additional
materials or activities for you to work through.
It is important to note that these activities are neither compulsory nor weighted, but that it will be to your
advantage to participate. The purpose of the activities is to help you better understand the content of
your weekly unit/s of study, and it will assist in creating insight and deeper meaning.
Activity 6 is based on Unit 6 (Chapter 8) of the prescribed courseware for this module.
Solution for activity 6:
1 HTAX230-1-AP-W8-TL-06022023
, Question 1
a.) The two ways to calculate the portion of the allowance expended to travel for business
are as follows:
• Actual business kilometers travelled during the year of assessment multiplied by the deemed
rate per kilometer which is determined by reference to the table of rates annually published
by the Minister of Finance.
• Actual business kilometers travelled during the year of assessment multiplied by the actual
rate per kilometer (total actual expenditure divided by the total kilometers travelled) as
supported by accurate records kept.
b.)
Based on deemed cost:
Allowance received (R6 000 x 12) 72 000
Total km’s travelled 35 000 km
Private km’s travelled (10 000 km)
Business km’s 25 000 km
Fixed cost component (per table): R320 000 x 1.15 = R368 000 R96 197
Fixed cost per km = R96 000 km x 100 274.8c
Fuel cost per km (per table) 171.8c
Maintenance cost per km (per table) 61.5
Total cost per km 508.1
Deduction for business use (25 000 km x 508.1/100) * (127 025)
Taxable amount -
*Note the deduction will be limited to the allowance amount of R72 000.
2 HTAX230-1-AP-W8-TL-06022023
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