Summary TAX NOV SOLUTION

Nov-16
(a) SOLUTION TO QUESTION 1 PART A

SHUAIB
NET NORMAL TAX

Salary (R) 643 000

Travel allowance
Allowance 192 900
Less reduction 207 561
Limited to zero (14 661) -
Reduction is greater of:
Actual 167 731
Deemed 207 561

Business kms 39 000
Private kms 15 000
Total kms 54 000

Deemed cost/km
Determined value (cost plus VAT) 575 700

Fixed cost 153 850
Total km/s 54 000
Total days 365

Fixed cost/km(153 850/54000)x365/365 2.849
Fuel cost/km 1.584
Maintenance cost/km 0.889
Total cost/km 5.322
Total deemed travel cost (Bus kms x rate) 207 561

Actual cost/km



Wear and tear (575700/7)x365/365 82 243
Finance charges 90 000
Running costs 60 000
Total cost 232 243

Total cost/km (232 243/54000) 4.301

Total actual cost (Bus kms x rate) 167 731

Professional membership fee - condition of work nil Fringe benefit -




Tax 3702 Nov
2016