FINAL ONLINE SUMMATIVE ASSESSMENT
Bachelor of Commerce in Accounting
PROGRAMME
Bachelor of Commerce in Financial Management
MODULE Taxation for Individuals
YEAR Two (2)
INTAKE January 2024 Semester 1
DATE 13 June 2024
,SECTION A [100 MARKS]
Answer ALL the questions in this section.
QUESTION 1 (20 Marks)
1.1 Benni is a Spanish citizen who is ordinarily a resident in Spain. During a work trip in 2018 and 2019, he (16 Marks)
was in South Africa from 3 May 2018 until 15 February 2019. He enjoyed his stay in South Africa and visited
again from 1 June 2020 to 31 December 2020. During November 2021 and December 2021, Benni again
visited South Africa for eight weeks. During 2022, he visited South Africa once more, from 1 October 2022 to
31 December 2022 for 92 days. He also visited South Africa again in 2023 from 01 October 2023 to 31
December 2023.
1.2 Dumisani uses street vendors to sell pirated versions of well-known DVD’s to the general public. (4 Marks)
His income from these activities amounted to R110 000 for the 2024 year of assessment.
REQUIRED:
Discuss in detail whether the above persons will be subject to normal tax in South Africa for the 2024 year of
assessment.
QUESTION 2 (30 Marks)
Mr. Ballim, retired from Hartley Ltd on 31 December 2023 as he has reached the age of 65 years. He is
married out of community of property. Upon his retirement he had received the following income for the year
of assessment:
· As per the agreement in his employment contract, Mr. Ballim continued to receive a salary of R25 000
per month for the entire current year of assessment.
· An expensive watch that the company had paid R15 000 for. This was awarded in appreciation of the
long service he had given to the company.
· Dividends of R16 000 was received from a company based in France which was listed on the
Johannesburg Stock Exchange (JSE).
· Mr. Ballim owns a rent producing property which earns rent of R4 000 per month, in addition to this he
has incurred maintenance expenses of R17 000 (allowable deduction) during the year of assessment.
· He received interest of R32 000 from a local bank, this was from a fixed deposit he held at the bank.
· Dividends of R90 000 which was received from a South African company for the year.
Mr. Ballim had the following expenses during the year of assessment:
· A contribution of 8% of his salary to a pension fund.
· He installed solar roof panels at his home to the value of R60 000 in May 2023.
· A provisional tax payment of R25 000 was made on 31 August 2023.
REQUIRED:
Calculate the tax payable for Mr. Ballim for the 2024 year of assessment.
,QUESTION 3 (20 Marks)
Sizwe received a travel allowance from his employer amounting to R120 000 for the current year of
assessment. He uses his car for business and private travels. He bought this car exactly 1 year ago for
R420 000 (including VAT). Sizwe travelled a total of 18 000 kilometres during the current year of
assessment, of which 10 000 km were for private purposes. He also kept an accurate record of expenses
incurred in respect of the car for the current year of assessment. The costs are as follows:
R
Finance charges 72 000
Maintenance cost 5 000
Fuel cost 15 000
Insurance premiums and licences fees 4 600
REQUIRED:
3.1 Calculate the taxable portion of the travel allowance received by Sizwe for the 2024 year of assessment. (14 Marks)
3.2 Ronald has been granted the right of use of a motor vehicle from his employer and he does not receive a
travel allowance. He is responsible for bearing the maintenance costs which amounted to R38 000 for the
2024 year of assessment. The company is responsible for the fuel costs. Ronald kept an accurate record of
kilometres travelled for private purposes. He travelled 27 000 kilometres for private purposes of his total of
45 000 kilometres travelled for the year. The employer purchased the vehicle for R345 000 including VAT.
REQUIRED:
Calculate the cash equivalent of the benefit for the current year of assessment. (6 Marks)
, QUESTION 4 (30 Marks)
4.1 Shireen is a resident of the republic of South Africa. She is the owner of various assets and property in
the country and has made the decision to sell a few of her assets. Shireen has been living in her home in
Knysna which she bought 12 years ago. She has now decided to relocate to Pretoria due to a change in her
job. Her residential property was bought at a cost price of R1 500 000 in January 2012 and it was sold for
R3 800 000 in February 2024.
She owned shares in Pedro (Pty) Ltd which she purchased for a cost of R150 000, she required extra cash
to undertake renovations in her home and decided to sell the shares for R260 000 in February 2024, she
does not deal in the buying and selling of shares. Shireen has been having problems with the payment of
rental from her tenant in a flat that she rents out, she has therefore decided to sell this flat. The flat was
purchased for R1 800 000 in April 2019 and sold for R2 500 000 in October 2023. In addition to the assets
that were sold in the current year of assessment she had made a capital loss of R300 000 from the 2023
year of assessment.
REQUIRED:
Calculate the taxable capital gain or loss of Shireen for the 2024 year of assessment. (25 Marks)
4.2 Precious, who is the sister of Shireen is a resident of the Republic. She is 52 years old and she resigned
from her employment on 30 November 2023. She received a lump sum from her pension fund of R210 000.
She used R70 000 of this lump sum to pay off her car and transferred the remaining balance into a pension
preservation fund.
REQUIRED:
Compute the tax payable on her current lump sum. (5 Marks)
END OF PAPER
APPENDICES
Bachelor of Commerce in Accounting
PROGRAMME
Bachelor of Commerce in Financial Management
MODULE Taxation for Individuals
YEAR Two (2)
INTAKE January 2024 Semester 1
DATE 13 June 2024
,SECTION A [100 MARKS]
Answer ALL the questions in this section.
QUESTION 1 (20 Marks)
1.1 Benni is a Spanish citizen who is ordinarily a resident in Spain. During a work trip in 2018 and 2019, he (16 Marks)
was in South Africa from 3 May 2018 until 15 February 2019. He enjoyed his stay in South Africa and visited
again from 1 June 2020 to 31 December 2020. During November 2021 and December 2021, Benni again
visited South Africa for eight weeks. During 2022, he visited South Africa once more, from 1 October 2022 to
31 December 2022 for 92 days. He also visited South Africa again in 2023 from 01 October 2023 to 31
December 2023.
1.2 Dumisani uses street vendors to sell pirated versions of well-known DVD’s to the general public. (4 Marks)
His income from these activities amounted to R110 000 for the 2024 year of assessment.
REQUIRED:
Discuss in detail whether the above persons will be subject to normal tax in South Africa for the 2024 year of
assessment.
QUESTION 2 (30 Marks)
Mr. Ballim, retired from Hartley Ltd on 31 December 2023 as he has reached the age of 65 years. He is
married out of community of property. Upon his retirement he had received the following income for the year
of assessment:
· As per the agreement in his employment contract, Mr. Ballim continued to receive a salary of R25 000
per month for the entire current year of assessment.
· An expensive watch that the company had paid R15 000 for. This was awarded in appreciation of the
long service he had given to the company.
· Dividends of R16 000 was received from a company based in France which was listed on the
Johannesburg Stock Exchange (JSE).
· Mr. Ballim owns a rent producing property which earns rent of R4 000 per month, in addition to this he
has incurred maintenance expenses of R17 000 (allowable deduction) during the year of assessment.
· He received interest of R32 000 from a local bank, this was from a fixed deposit he held at the bank.
· Dividends of R90 000 which was received from a South African company for the year.
Mr. Ballim had the following expenses during the year of assessment:
· A contribution of 8% of his salary to a pension fund.
· He installed solar roof panels at his home to the value of R60 000 in May 2023.
· A provisional tax payment of R25 000 was made on 31 August 2023.
REQUIRED:
Calculate the tax payable for Mr. Ballim for the 2024 year of assessment.
,QUESTION 3 (20 Marks)
Sizwe received a travel allowance from his employer amounting to R120 000 for the current year of
assessment. He uses his car for business and private travels. He bought this car exactly 1 year ago for
R420 000 (including VAT). Sizwe travelled a total of 18 000 kilometres during the current year of
assessment, of which 10 000 km were for private purposes. He also kept an accurate record of expenses
incurred in respect of the car for the current year of assessment. The costs are as follows:
R
Finance charges 72 000
Maintenance cost 5 000
Fuel cost 15 000
Insurance premiums and licences fees 4 600
REQUIRED:
3.1 Calculate the taxable portion of the travel allowance received by Sizwe for the 2024 year of assessment. (14 Marks)
3.2 Ronald has been granted the right of use of a motor vehicle from his employer and he does not receive a
travel allowance. He is responsible for bearing the maintenance costs which amounted to R38 000 for the
2024 year of assessment. The company is responsible for the fuel costs. Ronald kept an accurate record of
kilometres travelled for private purposes. He travelled 27 000 kilometres for private purposes of his total of
45 000 kilometres travelled for the year. The employer purchased the vehicle for R345 000 including VAT.
REQUIRED:
Calculate the cash equivalent of the benefit for the current year of assessment. (6 Marks)
, QUESTION 4 (30 Marks)
4.1 Shireen is a resident of the republic of South Africa. She is the owner of various assets and property in
the country and has made the decision to sell a few of her assets. Shireen has been living in her home in
Knysna which she bought 12 years ago. She has now decided to relocate to Pretoria due to a change in her
job. Her residential property was bought at a cost price of R1 500 000 in January 2012 and it was sold for
R3 800 000 in February 2024.
She owned shares in Pedro (Pty) Ltd which she purchased for a cost of R150 000, she required extra cash
to undertake renovations in her home and decided to sell the shares for R260 000 in February 2024, she
does not deal in the buying and selling of shares. Shireen has been having problems with the payment of
rental from her tenant in a flat that she rents out, she has therefore decided to sell this flat. The flat was
purchased for R1 800 000 in April 2019 and sold for R2 500 000 in October 2023. In addition to the assets
that were sold in the current year of assessment she had made a capital loss of R300 000 from the 2023
year of assessment.
REQUIRED:
Calculate the taxable capital gain or loss of Shireen for the 2024 year of assessment. (25 Marks)
4.2 Precious, who is the sister of Shireen is a resident of the Republic. She is 52 years old and she resigned
from her employment on 30 November 2023. She received a lump sum from her pension fund of R210 000.
She used R70 000 of this lump sum to pay off her car and transferred the remaining balance into a pension
preservation fund.
REQUIRED:
Compute the tax payable on her current lump sum. (5 Marks)
END OF PAPER
APPENDICES
