Test 1
QUESTION 1 (30 marks, 36 minutes)
Trevor is 67 years old and married in community of property. He was employed by XYZ Ltd for the
period 1 March 2010 to 28 February 2011. The following information relates to Trevor for the 2011 tax
year.
1. He received a salary of R336 000 for the year of assessment.
2. He received interest of R78 000 on his investments for the 2011 year of assessment. His wife
received interest of R25 000 on her investments for the 2011 year of assessment.
3. His monthly contributions to a medical aid fund were R6 000 (of which R4 000 per month was
paid by XYZ Ltd) for the full tax year. His wife and three (3) children are registered dependants
on the medical aid.
Trevor had qualifying medical expenses of R12 000 during the 2011 tax year.
4. His contributions to XYZ Ltd’s pension fund were 8% of his salary. XYZ Ltd made equal
contributions every month to his pension fund.
5. Trevor paid his annual membership fees of R3 500 to the Institute of Engineers. It is a condition
of his employment to be a registered engineer.
6. Trevor made monthly contributions, amounting to R38 400 for the year, to a retirement annuity
fund for the full tax year.
7. Trevor was away from his home on a business trip for ten nights between 1 March 2010 and 28
February 2011. XYZ Ltd gave him a subsistence allowance of R42 000 for this trip. The trip was
to one of XYZ Ltd’s factories in Germany. XYZ Ltd paid the hotel accommodation, but Trevor
had to pay for everything else. He incurred the following expenses in Germany of which he has
proof (expenses to be converted to rand at 1€ = R9,01)
Meals €1 200
Incidental costs € 300
The deemed cost as per the Government Gazette for Germany is €107 per day.
8. XYZ Ltd paid his children’s school fees which amounted to R10 500 per month (excluding
December, when no school fees are payable.)
9. Trevor received a cell phone allowance of R26 400 for the year. He does not have any proof of
what he paid for his cell phone. The cost of his phone calls for the period 1 March 2010 to 28
February 20111 were as follows (he has the itemised billing statement from the cell phone
provider).
R
Private calls 1 800
Business calls 1 100
10. XYZ Ltd’s accountant deducted employees’ tax of R90 000 in total for the period 1 March 2010
to 29 February 2011.
REQUIRED: MARKS
1.1 Calculate Trevor’s taxable income for the 2011 tax year 27
1.2 Calculate Trevor’s tax liability for the 2011 tax year 3
, QUESTION 2 (43 marks, 52 minutes)
Please answer the taxpayer in each of the following scenarios
a. Medical aid (12 marks, 15 minutes):
Edward contributes R8 000 per month for the full tax year towards medical aid fund. His employer,
ABC Ltd, agreed to pay R6 000 of the R8 000 monthly premium. Edward had qualifying medical
expenses of R13 000 during the 2011 tax year.
Edward’s only income was a salary of R360 000 for the year. Edward is 34 years old. His wife and
two (2) children are registered dependants on the medial aid. Neither he or any of his dependants are
disabled as defined.
REQUIRED MARKS
Calculate Edward’s taxable income for the year of assessment ended 28 February 2011 12
b. Residential Accommodation (5 marks, 6 minutes):
As part of his package, Mitchell has the right of use of a house owned by his employer (DEF Ltd). The
house has four rooms. DEF Ltd provided furniture and paid for the water and electricity. DEF Ltd’s
costs in respect of the house (in total for the whole tax year) were as follows:
R
Water & electricity 8 400
Rates & taxes 3 800
Mitchell’s remuneration factor for the previous year of assessment was R160 000 and it was
R200 000 for the current year of assessment. Mitchell paid R100 per month to his employer, to reside
in this house.
REQUIRED MARKS
Calculate the taxable fringe benefit for the 2011 tax year 5
c. Travel allowance (15 marks, 18 minutes):
Jackson received a travel allowance of R7 900 a month from his employer for the period 1 March
2010 to 28 February 2011. He kept a log book of his travels, which showed the following for the
period 1 March 2010 to 28 February 2011.
Kilometres
Travel between house and office 4 320 km
Travel to clients 10 810 km
Travel for private use 2 210 km
17 340 km
He also kept records and proof of his expenses for the period 1 March 2010 to 28 February 2011.
R
Petrol and maintenance 17 952
Capital repayment 6 452
QUESTION 1 (30 marks, 36 minutes)
Trevor is 67 years old and married in community of property. He was employed by XYZ Ltd for the
period 1 March 2010 to 28 February 2011. The following information relates to Trevor for the 2011 tax
year.
1. He received a salary of R336 000 for the year of assessment.
2. He received interest of R78 000 on his investments for the 2011 year of assessment. His wife
received interest of R25 000 on her investments for the 2011 year of assessment.
3. His monthly contributions to a medical aid fund were R6 000 (of which R4 000 per month was
paid by XYZ Ltd) for the full tax year. His wife and three (3) children are registered dependants
on the medical aid.
Trevor had qualifying medical expenses of R12 000 during the 2011 tax year.
4. His contributions to XYZ Ltd’s pension fund were 8% of his salary. XYZ Ltd made equal
contributions every month to his pension fund.
5. Trevor paid his annual membership fees of R3 500 to the Institute of Engineers. It is a condition
of his employment to be a registered engineer.
6. Trevor made monthly contributions, amounting to R38 400 for the year, to a retirement annuity
fund for the full tax year.
7. Trevor was away from his home on a business trip for ten nights between 1 March 2010 and 28
February 2011. XYZ Ltd gave him a subsistence allowance of R42 000 for this trip. The trip was
to one of XYZ Ltd’s factories in Germany. XYZ Ltd paid the hotel accommodation, but Trevor
had to pay for everything else. He incurred the following expenses in Germany of which he has
proof (expenses to be converted to rand at 1€ = R9,01)
Meals €1 200
Incidental costs € 300
The deemed cost as per the Government Gazette for Germany is €107 per day.
8. XYZ Ltd paid his children’s school fees which amounted to R10 500 per month (excluding
December, when no school fees are payable.)
9. Trevor received a cell phone allowance of R26 400 for the year. He does not have any proof of
what he paid for his cell phone. The cost of his phone calls for the period 1 March 2010 to 28
February 20111 were as follows (he has the itemised billing statement from the cell phone
provider).
R
Private calls 1 800
Business calls 1 100
10. XYZ Ltd’s accountant deducted employees’ tax of R90 000 in total for the period 1 March 2010
to 29 February 2011.
REQUIRED: MARKS
1.1 Calculate Trevor’s taxable income for the 2011 tax year 27
1.2 Calculate Trevor’s tax liability for the 2011 tax year 3
, QUESTION 2 (43 marks, 52 minutes)
Please answer the taxpayer in each of the following scenarios
a. Medical aid (12 marks, 15 minutes):
Edward contributes R8 000 per month for the full tax year towards medical aid fund. His employer,
ABC Ltd, agreed to pay R6 000 of the R8 000 monthly premium. Edward had qualifying medical
expenses of R13 000 during the 2011 tax year.
Edward’s only income was a salary of R360 000 for the year. Edward is 34 years old. His wife and
two (2) children are registered dependants on the medial aid. Neither he or any of his dependants are
disabled as defined.
REQUIRED MARKS
Calculate Edward’s taxable income for the year of assessment ended 28 February 2011 12
b. Residential Accommodation (5 marks, 6 minutes):
As part of his package, Mitchell has the right of use of a house owned by his employer (DEF Ltd). The
house has four rooms. DEF Ltd provided furniture and paid for the water and electricity. DEF Ltd’s
costs in respect of the house (in total for the whole tax year) were as follows:
R
Water & electricity 8 400
Rates & taxes 3 800
Mitchell’s remuneration factor for the previous year of assessment was R160 000 and it was
R200 000 for the current year of assessment. Mitchell paid R100 per month to his employer, to reside
in this house.
REQUIRED MARKS
Calculate the taxable fringe benefit for the 2011 tax year 5
c. Travel allowance (15 marks, 18 minutes):
Jackson received a travel allowance of R7 900 a month from his employer for the period 1 March
2010 to 28 February 2011. He kept a log book of his travels, which showed the following for the
period 1 March 2010 to 28 February 2011.
Kilometres
Travel between house and office 4 320 km
Travel to clients 10 810 km
Travel for private use 2 210 km
17 340 km
He also kept records and proof of his expenses for the period 1 March 2010 to 28 February 2011.
R
Petrol and maintenance 17 952
Capital repayment 6 452
