May-15
(a) SOLUTION TO QUESTION 1 PART A
BENJAMIN
NET NORMAL TAX
Salary (R) 650 000
Travel allowance
Allowance 6 000
Less reduction 7 220
Limited to zero (1 220) -
Reduction is:
Deemed 3,61/Km
Travelled less than 8000 business kms therefore reimbursive allowance
Claim is R3,18/km, therefore no amount is taxable
Parking faclility - Aminities provided at work - no benefit -
Market value 4 000
Less payment 2 000
2 000
Bursary 18 000
Exemption (bursary for studies) 18 000
- -
Housing allowance ®
Treated as a low cost loan
Loan amount 1 000 000
Low cost loan percentage
Rental amount/Agreement price of property 3.05%
Official rate (Repo rate plus 1%) 7.00%
Number of days 273
Low cost calculation 29 544
(7%-3,05%)x1 000 000x273/365 29 544
Foreign dividends (in community of property) 3 200
Less exemption (25/45 x 3200) (1 778)
1 422 1 422
Local interest (in community of property) 28 800
Exemption (23 800)
5 000 5 000
Tax 3702 May/June 2015
(a) SOLUTION TO QUESTION 1 PART A
BENJAMIN
NET NORMAL TAX
Salary (R) 650 000
Travel allowance
Allowance 6 000
Less reduction 7 220
Limited to zero (1 220) -
Reduction is:
Deemed 3,61/Km
Travelled less than 8000 business kms therefore reimbursive allowance
Claim is R3,18/km, therefore no amount is taxable
Parking faclility - Aminities provided at work - no benefit -
Market value 4 000
Less payment 2 000
2 000
Bursary 18 000
Exemption (bursary for studies) 18 000
- -
Housing allowance ®
Treated as a low cost loan
Loan amount 1 000 000
Low cost loan percentage
Rental amount/Agreement price of property 3.05%
Official rate (Repo rate plus 1%) 7.00%
Number of days 273
Low cost calculation 29 544
(7%-3,05%)x1 000 000x273/365 29 544
Foreign dividends (in community of property) 3 200
Less exemption (25/45 x 3200) (1 778)
1 422 1 422
Local interest (in community of property) 28 800
Exemption (23 800)
5 000 5 000
Tax 3702 May/June 2015
