Nov-17
(a) SOLUTION TO QUESTION 1 PART A
JAY
NET NORMAL TAX
Salary (R) 800 000
Pension 120 000
Use of company car
(300 000 x 1.14 x 3.25% x 10) Value of FB 111 150
Less reductions
(9 000/27000 x Value of Fringe Benefit) (37 050)
Private fuel (18 000 x 1,335) (24 030)
Taxable portion 50 070 50 070
Long service award
Fringe benefit on television 34 200
No exemption - Only at 15 years and 25 years -
34 200 34 200
Foreign dividends 41 000
Exemption (41 000 x 25/45) (22 778)
Purchased Annuity
Annuity 30 000
Exemption (30000x1000000/(15000x6.00726x12) (27 744)
2 256 2 256
Pension Fringe benefit 64 000
Medical Aid Fringe benefit 36 000
Subtotal 1 124 748
Pension Fund contributions - Employee 64 000
Pension Fund contributions - Employer 64 000
Pension Fund contributions - Additional 100 000
228 000
Limited to the lesser of:
350000 and 350 000
27.5% of Remuneration (999 000) 274 725 (228 000)
Or
27.5% of Subtotal 309 306
Disallowed deductions -
Taxable income 896 748
Tax 3702 Nov
2017
(a) SOLUTION TO QUESTION 1 PART A
JAY
NET NORMAL TAX
Salary (R) 800 000
Pension 120 000
Use of company car
(300 000 x 1.14 x 3.25% x 10) Value of FB 111 150
Less reductions
(9 000/27000 x Value of Fringe Benefit) (37 050)
Private fuel (18 000 x 1,335) (24 030)
Taxable portion 50 070 50 070
Long service award
Fringe benefit on television 34 200
No exemption - Only at 15 years and 25 years -
34 200 34 200
Foreign dividends 41 000
Exemption (41 000 x 25/45) (22 778)
Purchased Annuity
Annuity 30 000
Exemption (30000x1000000/(15000x6.00726x12) (27 744)
2 256 2 256
Pension Fringe benefit 64 000
Medical Aid Fringe benefit 36 000
Subtotal 1 124 748
Pension Fund contributions - Employee 64 000
Pension Fund contributions - Employer 64 000
Pension Fund contributions - Additional 100 000
228 000
Limited to the lesser of:
350000 and 350 000
27.5% of Remuneration (999 000) 274 725 (228 000)
Or
27.5% of Subtotal 309 306
Disallowed deductions -
Taxable income 896 748
Tax 3702 Nov
2017
