1. A taxpayer is 53 years old and a provisional taxpayer. The taxpayer's 2021 year of assessment was assesed on 12/11/2021
and indicated taxable income of R797 196 which included a severance benefit of R86 741. The 2020 year of assessment was
assessed on 28/11/2020 and indicated taxable income of R747 244. The 2019 year of assessment was assessed on
19/01/2020 and indicated taxable income of R495 552. Calculate the minimum amount on which the taxpayer should base
their second provisional tax payment for the current year of assessment.
a. R797 196
b. R797 196 - R86 741 x 1.08
c. None of the options are correct.
d. R747 244 - R86 741
e. R797 196 - R86 741
Feedback
The actual taxable income is not known and therefore the minimum amount is the basic amount because the taxpayer's
taxable income is less than R1 000 000.
2. A non-resident taxpayer, 44 years old, earned the following income in the current year of assessment: (i) Interest on a
deposit in a bank resident in the Republic, of R50 000 (ii) Interest on a deposit in a bank that is resident in Germany, of EUR 2
000 (R30 000) (iii) Dividends paid by a company registered and operating in the Republic, of R25 000. Calculate the amount
to be included in their gross income for South African income tax purposes. Ignore any double tax agreement. Don't use a
""R"" sign.
Answer:
75000
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Interest earned by a non-resident from a bank registered outside of the Republic is not considered to have a source within
the Republic and is therefore excluded. Gross income is before the deduction of exemptions.
3. A taxpayer (35 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of May:
-Salary R449 107.
-Medical aid contributions: R14 000. The taxpayer and his employer contribute equally towards the taxpayer's medical aid
fund.
-On 15 May the taxpayer's employer donated R8 400 to a non profit public benefit organisation on behalf of the taxpayer
and was issued a section18A receipt.
Calculate the balance of remuneration for the month of May that will be used as a basis for employees tax purposes by the
taxpayer's employer.
a. R449 107 - (R8 400 limited to: 5% of R449 107)
b. R449 107 - R8 400
c. (R449 107 + (R14 )) - (R8 400 limited to: 5% of (R449 107 + (R14 ))
d. None of the options are correct
e. R449 107 + (R14 ) - (R8 400 limited to: 10% of (R449 107 + (R14 ))
Feedback
The balance of remuneration will consist of remuneration less the donation to the PBO made by the employer on behalf of
the employee.
1
,4. A taxpayer (36 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of September:- salary R73 413. -The right to use an employer-owned vehicle for the month of September. The value
of private use relating to the vehicle is R20 403. The taxpayer maintained accurate records of kilometres travelled and can
prove that he travelled a total of 1 000km's in September of which 600km's was for business purposes. The taxpayer did not
keep record of expenses incurred. Determine remuneration for the month of September that will be used as a basis for
employees tax purposes.
a. R73 413 + R20 403
b. R73 413 + (R20 403 x 20%)
c. R73 413 + (R20 403 x 80%)
d. None of the options are correct
e. R73 413 + ((R20 403 x (600/1 000) x 80%))
Feedback
80% of the taxable benefit relating to the right of use of the vehicle needs to be considered in the calculation of
remuneration.
5. A taxpayer (45 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of September:- salary R65 959. -The right to use an employer-owned vehicle for the month of September. The value
of private use relating to the vehicle is R17 155. The taxpayer maintained accurate records of kilometres travelled and can
prove that he travelled a total of 1 000km's in September of which 600km's was for business purposes. The taxpayer did not
keep record of expenses incurred. Determine remuneration for the month of September that will be used as a basis for
employees tax purposes.
a. None of the options are correct
b. R65 959 + (R17 155 x 20%)
c. R65 959 + R17 155
d. R65 959 + ((R17 155 x (600/1 000) x 80%))
e. e. R65 959 + (R17 155 x 80%)
Feedback
80% of the taxable benefit relating to the right of use of the vehicle needs to be considered in the calculation of
remuneration.
6. A taxpayer, 79 years old, and married in community of property, passed away during the current year of assessment. The
net value of the estate of the taxpayer is R6 065 646. The taxpayer's spouse passed away 6 years earlier, the net value of the
spouse's estate was R8 257 261. Calculate the dutiable amount of the estate of the taxpayer for estate duty purposes. PLEASE
NOTE: Numeric answer - don't use a 'R' sign or any words (e.g. nil - use 0).
Answer:
2565646
Feedback
The dutiable amount of the estate is the amount after the abatement has been taken into account. As the taxpayer had a
predeceased spouse any balance of the abatement from the predeceased spouse can be used by the taxpayer.
2
, 7. A taxpayer (32 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of July:- salary R369 727. -The taxpayer's employer paid R4 500 towards a medical aid fund on behalf of the
taxpayer.The taxpayer's employer paid employees R5 for every kilometer travelled for business purposes. The taxpayer
travelled in his Mazda which cost him R368 821 (including VAT). He maintained accurate records of kilometres travelled and
can prove that he travelled a total of 2 500km's in July of which 500km's was for business purposes. The taxpayer did not
keep record of expenses incurred and has elected the simplified method for determining business expenditure. Determine
remuneration for the month of July that will be used as a basis for employees tax purposes by the employer.
a. R369 727 + R4 500 + (R5,00 x 500)
b. R369 727
c. None of the options are correct
d. R369 727 + R4 500
e. R369 727 + R4 500 + ((R5,00 - R3,82) x 500)
Feedback
100% of the excess re-imbursive travel allowance is remuneration. The employer's contribution towards the employee's
medical aid fund is a taxable fringe benefit and therefore remuneration.
8. A taxpayer died during the current year of assessment, they owned a house in Germany that was sold for the equivalent of
R10 000 000. The house was inherited by the taxpayer from his grandmother, who was ordinarily resident in Munich. The
mortgage loan on the property with a rand equivalent of R2 000 000 was repaid by the executor. The estate had an accrual
claim of R500 000 against the estate, in favour of the taxpayer's spouse. Their bank overdraft balance was R45 000. Calculate
the total deductions that would be deducted from the gross value of the estate for estate duty purposes.
Answer:
8545000
Feedback
The accrual claim, the value of the foreign property and the bank overdraft can all be deducted from the gross value of the
estate for estate duty purposes.
9. A taxpayer is married in community of property and a resident. He sold his farm (excluded from the joint estate) for a
market related price of R2 113 352 on 03 June 2021. He also made a R128 726 donation to a fundraising event on 03 August
2021 and his wife made a donation of R154 471 to the church on the same date.
Required: Calculate the donations tax that the taxpayer must pay for the above transactions. You can assume that he has not
reached the R30 million accumulated donation amount.
a. [R128 726 - R100 000] x 20%
b. [((R128 726 + R154 471) / 2) - R100 000] x 20%
c. None of the options are correct.
d. [(R128 726 + R154 471 - R100 000) / 2] x 20%
e. [R2 113 352 + R128 726 - R100 000] x 20%
Feedback
The taxpayer is married in community of property so donations from the joint estate are donated equally by each spouse
and farm sold at market value.
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and indicated taxable income of R797 196 which included a severance benefit of R86 741. The 2020 year of assessment was
assessed on 28/11/2020 and indicated taxable income of R747 244. The 2019 year of assessment was assessed on
19/01/2020 and indicated taxable income of R495 552. Calculate the minimum amount on which the taxpayer should base
their second provisional tax payment for the current year of assessment.
a. R797 196
b. R797 196 - R86 741 x 1.08
c. None of the options are correct.
d. R747 244 - R86 741
e. R797 196 - R86 741
Feedback
The actual taxable income is not known and therefore the minimum amount is the basic amount because the taxpayer's
taxable income is less than R1 000 000.
2. A non-resident taxpayer, 44 years old, earned the following income in the current year of assessment: (i) Interest on a
deposit in a bank resident in the Republic, of R50 000 (ii) Interest on a deposit in a bank that is resident in Germany, of EUR 2
000 (R30 000) (iii) Dividends paid by a company registered and operating in the Republic, of R25 000. Calculate the amount
to be included in their gross income for South African income tax purposes. Ignore any double tax agreement. Don't use a
""R"" sign.
Answer:
75000
Feedback
Interest earned by a non-resident from a bank registered outside of the Republic is not considered to have a source within
the Republic and is therefore excluded. Gross income is before the deduction of exemptions.
3. A taxpayer (35 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of May:
-Salary R449 107.
-Medical aid contributions: R14 000. The taxpayer and his employer contribute equally towards the taxpayer's medical aid
fund.
-On 15 May the taxpayer's employer donated R8 400 to a non profit public benefit organisation on behalf of the taxpayer
and was issued a section18A receipt.
Calculate the balance of remuneration for the month of May that will be used as a basis for employees tax purposes by the
taxpayer's employer.
a. R449 107 - (R8 400 limited to: 5% of R449 107)
b. R449 107 - R8 400
c. (R449 107 + (R14 )) - (R8 400 limited to: 5% of (R449 107 + (R14 ))
d. None of the options are correct
e. R449 107 + (R14 ) - (R8 400 limited to: 10% of (R449 107 + (R14 ))
Feedback
The balance of remuneration will consist of remuneration less the donation to the PBO made by the employer on behalf of
the employee.
1
,4. A taxpayer (36 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of September:- salary R73 413. -The right to use an employer-owned vehicle for the month of September. The value
of private use relating to the vehicle is R20 403. The taxpayer maintained accurate records of kilometres travelled and can
prove that he travelled a total of 1 000km's in September of which 600km's was for business purposes. The taxpayer did not
keep record of expenses incurred. Determine remuneration for the month of September that will be used as a basis for
employees tax purposes.
a. R73 413 + R20 403
b. R73 413 + (R20 403 x 20%)
c. R73 413 + (R20 403 x 80%)
d. None of the options are correct
e. R73 413 + ((R20 403 x (600/1 000) x 80%))
Feedback
80% of the taxable benefit relating to the right of use of the vehicle needs to be considered in the calculation of
remuneration.
5. A taxpayer (45 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of September:- salary R65 959. -The right to use an employer-owned vehicle for the month of September. The value
of private use relating to the vehicle is R17 155. The taxpayer maintained accurate records of kilometres travelled and can
prove that he travelled a total of 1 000km's in September of which 600km's was for business purposes. The taxpayer did not
keep record of expenses incurred. Determine remuneration for the month of September that will be used as a basis for
employees tax purposes.
a. None of the options are correct
b. R65 959 + (R17 155 x 20%)
c. R65 959 + R17 155
d. R65 959 + ((R17 155 x (600/1 000) x 80%))
e. e. R65 959 + (R17 155 x 80%)
Feedback
80% of the taxable benefit relating to the right of use of the vehicle needs to be considered in the calculation of
remuneration.
6. A taxpayer, 79 years old, and married in community of property, passed away during the current year of assessment. The
net value of the estate of the taxpayer is R6 065 646. The taxpayer's spouse passed away 6 years earlier, the net value of the
spouse's estate was R8 257 261. Calculate the dutiable amount of the estate of the taxpayer for estate duty purposes. PLEASE
NOTE: Numeric answer - don't use a 'R' sign or any words (e.g. nil - use 0).
Answer:
2565646
Feedback
The dutiable amount of the estate is the amount after the abatement has been taken into account. As the taxpayer had a
predeceased spouse any balance of the abatement from the predeceased spouse can be used by the taxpayer.
2
, 7. A taxpayer (32 years old), is a full-time employee. The following information relates to the taxpayers employment for the
month of July:- salary R369 727. -The taxpayer's employer paid R4 500 towards a medical aid fund on behalf of the
taxpayer.The taxpayer's employer paid employees R5 for every kilometer travelled for business purposes. The taxpayer
travelled in his Mazda which cost him R368 821 (including VAT). He maintained accurate records of kilometres travelled and
can prove that he travelled a total of 2 500km's in July of which 500km's was for business purposes. The taxpayer did not
keep record of expenses incurred and has elected the simplified method for determining business expenditure. Determine
remuneration for the month of July that will be used as a basis for employees tax purposes by the employer.
a. R369 727 + R4 500 + (R5,00 x 500)
b. R369 727
c. None of the options are correct
d. R369 727 + R4 500
e. R369 727 + R4 500 + ((R5,00 - R3,82) x 500)
Feedback
100% of the excess re-imbursive travel allowance is remuneration. The employer's contribution towards the employee's
medical aid fund is a taxable fringe benefit and therefore remuneration.
8. A taxpayer died during the current year of assessment, they owned a house in Germany that was sold for the equivalent of
R10 000 000. The house was inherited by the taxpayer from his grandmother, who was ordinarily resident in Munich. The
mortgage loan on the property with a rand equivalent of R2 000 000 was repaid by the executor. The estate had an accrual
claim of R500 000 against the estate, in favour of the taxpayer's spouse. Their bank overdraft balance was R45 000. Calculate
the total deductions that would be deducted from the gross value of the estate for estate duty purposes.
Answer:
8545000
Feedback
The accrual claim, the value of the foreign property and the bank overdraft can all be deducted from the gross value of the
estate for estate duty purposes.
9. A taxpayer is married in community of property and a resident. He sold his farm (excluded from the joint estate) for a
market related price of R2 113 352 on 03 June 2021. He also made a R128 726 donation to a fundraising event on 03 August
2021 and his wife made a donation of R154 471 to the church on the same date.
Required: Calculate the donations tax that the taxpayer must pay for the above transactions. You can assume that he has not
reached the R30 million accumulated donation amount.
a. [R128 726 - R100 000] x 20%
b. [((R128 726 + R154 471) / 2) - R100 000] x 20%
c. None of the options are correct.
d. [(R128 726 + R154 471 - R100 000) / 2] x 20%
e. [R2 113 352 + R128 726 - R100 000] x 20%
Feedback
The taxpayer is married in community of property so donations from the joint estate are donated equally by each spouse
and farm sold at market value.
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