Summary TAX MAY SOLUTION

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