May-14
(a) SOLUTION TO QUESTION 1 PART A
SIMON
YEAR OF ASSESSMENT
Salary (R) 270 000
Right of use
Value of fringe benefit ( R )
230 000 x 1,14 x 0,85 x 3,5% x 9 70 204
Less
Business travel (70 204 x 4900/7000) (49 143)
Vehicle repairs (3 500 x 2100/7000) (1 050)
Fuel exp (2 100 x 1,16) (2 436)
Taxable portion 17 575 17 575
Fringe benefit Use of tablet - leased asset - cost to employer ( R ) 2 800
Cellphone allowance - 100% taxable - ( R ) 1 800
No s11(a) deduction - salaried employee -
Pension income 63 000
Foreign interest 7 000
Local interest 28 000
Exemption -23 800
4 200 4 200
Reimbursive allowance 3 000
Less proof of allowance 3 000
Taxable amount - -
Medical fringe benefit - for period employed ( R ) 11 000
Medical fringe benefit - for period retired - no Fringe benefit -
Subtotal 377 375
Pension contribution 22 000 (22 000)
Limited to the lesser of:
350000 or 350 000
27,5% of Remuneration and
(270 000+(70204x80%)+2800+1800+11000)x27.5% 93 985
27,5% of taxable income 103 778
Disallowed deductions -
Taxable income 355 375
Tax 3702 May/June 2014
(a) SOLUTION TO QUESTION 1 PART A
SIMON
YEAR OF ASSESSMENT
Salary (R) 270 000
Right of use
Value of fringe benefit ( R )
230 000 x 1,14 x 0,85 x 3,5% x 9 70 204
Less
Business travel (70 204 x 4900/7000) (49 143)
Vehicle repairs (3 500 x 2100/7000) (1 050)
Fuel exp (2 100 x 1,16) (2 436)
Taxable portion 17 575 17 575
Fringe benefit Use of tablet - leased asset - cost to employer ( R ) 2 800
Cellphone allowance - 100% taxable - ( R ) 1 800
No s11(a) deduction - salaried employee -
Pension income 63 000
Foreign interest 7 000
Local interest 28 000
Exemption -23 800
4 200 4 200
Reimbursive allowance 3 000
Less proof of allowance 3 000
Taxable amount - -
Medical fringe benefit - for period employed ( R ) 11 000
Medical fringe benefit - for period retired - no Fringe benefit -
Subtotal 377 375
Pension contribution 22 000 (22 000)
Limited to the lesser of:
350000 or 350 000
27,5% of Remuneration and
(270 000+(70204x80%)+2800+1800+11000)x27.5% 93 985
27,5% of taxable income 103 778
Disallowed deductions -
Taxable income 355 375
Tax 3702 May/June 2014
