TAX3702/101/3/2018
Tutorial Letter 101/3/2018
TAXATION OF INDIVIDUALS
TAX3702
Semesters 1 and 2
Department of Taxation
This tutorial letter contains important information regarding this module
Bar code
, CONTENTS
Page
1 INTRODUCTION AND WELCOME 3
2 PURPOSE AND OUTCOMES 3
2.1 Purpose 3
2.2 Specific outcomes and assessment criteria 4
3 LECTURERS AND CONTACT DETAILS 5
3.1 Administrative queries 5
3.2 Module content-related queries 6
3.3 Academic administrative queries 6
4 RESOURCES 7
4.1 Study material 7
4.2 Prescribed book 7
4.3 E-reserves/recommended books and reading lists 8
4.4 Pocket calculators 8
5 STUDENT SUPPORT SERVICES 8
5.1 myUnisa 8
5.2 Video clip 8
5.3 Tutors 9
5.4 Free computer and internet access 9
6 STUDY PLAN 9
7 ASSESSMENT 10
7.1 Assignments 11
7.2 Examination 13
7.3 Supplementary, aegrotat or special examinations 14
8 OTHER ASSESSMENT METHODS 14
9 OTHER MATTERS 14
9.1 Plagiarism 14
9.2 How do I redirect my myLife Unisa e-mail address to another account? 15
9.3 Health conditions such as HIV/AIDS 16
10 FREQUENTLY ASKED QUESTIONS 16
11 CONCLUSION 17
ANNEXURE A: ASSIGNMENT 1/2018 (FIRST SEMESTER) 18
ANNEXURE B: ASSIGNMENT 2/2018 (FIRST SEMESTER) 35
ANNEXURE C: ASSIGNMENT 1/2018 (SECOND SEMESTER) 39
ANNEXURE D: ASSIGNMENT 2/2018 (SECOND SEMESTER) 55
2
, TAX3702/101
1 INTRODUCTION AND WELCOME
We have pleasure in welcoming you as a student to the module, TAXATION OF INDIVIDUALS. We hope
that you will find your studies interesting and rewarding and that you will be successful in the examination.
Please read this tutorial letter carefully to orientate yourself with the requirements for this module.
This module is practical and therefore you will have to learn rules and how to apply them. This means that
you will have to start with your studies immediately as the semester is approximately 13 weeks long, and you
will need to give yourself time to practice what you learn. For your convenience, we include a proposed study
programme indicating the MINIMUM time you will have to put aside for each learning unit as well as the
specific outcomes and assessment standards for the module. The specific outcomes and assessment
standards for the module will be provided again in every learning unit.
There are several lecturers in the Department of Taxation’s undergraduate section who will be assisting you,
but your primary lecturers are Mr Ari Swanepoel and Mr Mark van Dyk.
How to get started on myUnisa
It is important that you use myUnisa regularly. This technological resource makes it easier to communicate
with the University, your lecturers and fellow students about your studies. By using myUnisa, you will be able
to submit your assignments electronically, access the library resources, get your assignment marks and take
part in activities, tasks and discussions relating to the contents of this module. Register TODAY and visit it
regularly.
In addition to registering on myUnisa, it is crucial that you activate your myLife e-mail address, as all your
official correspondence regarding this module will be sent to your myLife address and not your private e-mail
address. Please consult the Study @ Unisa guide on myUnisa for more information on the activation of your
myLife e-mail address as well as obtaining access to the myUnisa module website.
All study material is available online. You will receive some printed materials as a back-up. HOWEVER, DO
NOT WAIT FOR PRINTED MATERIALS BEFORE YOU START STUDYING.
2 PURPOSE AND OUTCOMES
2.1 PURPOSE
The aim of this module is to provide learners with a sound knowledge of the Income Tax Act, applicable to
individuals (natural persons) as well as the application of the principles governing individuals in order to
determine the income tax liability. The module encompasses the calculation of income tax liability including
the calculation of fringe benefits, retirement benefits, investment income and capital gains tax. Students will
also learn to calculate pre-paid taxes, both employees’ tax and provisional tax. The taxation of non-residents
also forms part of the content of the module. You will also deal with donations tax and estate duty.
3
, 2.2 SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA
We will assess whether you are competent in the taxation of individuals by means of case studies (real-life
situations). You will be required to apply a thorough theoretical knowledge to the calculation of the tax liability
of natural persons, both resident and non-resident correctly in terms of the South African Income Tax Act.
You will also be required to apply a thorough theoretical knowledge to the calculation of donations tax and
estate duty correctly.
The assessment will be conducted in terms of the following specific outcomes:
SPECIFIC OUTCOME 1:
Students must be able to demonstrate a well-rounded and systematic knowledge base in determining the
total net tax liability in terms of the Income Tax Act as it applies to an individual resident in South Africa.
Assessment Criteria
Students are competent if evidence shows that they are able to:
1.1 discuss and calculate the gross income and special inclusions of an individual
1.2 identify and apply exempt or partially exempt income
1.3 identify, calculate and apply the general, specific and prohibited deductions
1.4 calculate and apply the taxable capital gain/loss of an individual
1.5 calculate the net normal tax liability
1.6 calculate the tax liability in respect of lump sums
1.7 identify the tax status of insolvent persons
SPECIFIC OUTCOME 2:
Students must be able to demonstrate an understanding and knowledge of the total net tax liability, in
terms of the Income Tax Act, as it applies to an individual who is considered a non-resident in South Africa
for taxation purposes, as well as an ability to evaluate and apply this knowledge.
Assessment Criteria
Students are competent if evidence shows that they are able to:
2.1 apply the source rules for different types of income
2.2 apply exemptions applicable for different types of income
2.3 calculate net normal tax liability and withholding taxes
SPECIFIC OUTCOME 3:
Students must be able to demonstrate an ability to gather, process and apply information in the context
of employees’ tax and provisional tax in terms of the Income Tax Act.
Assessment Criteria
Students are competent if evidence shows that they are able to:
3.1 calculate employees’ tax
3.2 calculate provisional tax
3.3 apply penalties and interest in respect of provisional tax
4
Tutorial Letter 101/3/2018
TAXATION OF INDIVIDUALS
TAX3702
Semesters 1 and 2
Department of Taxation
This tutorial letter contains important information regarding this module
Bar code
, CONTENTS
Page
1 INTRODUCTION AND WELCOME 3
2 PURPOSE AND OUTCOMES 3
2.1 Purpose 3
2.2 Specific outcomes and assessment criteria 4
3 LECTURERS AND CONTACT DETAILS 5
3.1 Administrative queries 5
3.2 Module content-related queries 6
3.3 Academic administrative queries 6
4 RESOURCES 7
4.1 Study material 7
4.2 Prescribed book 7
4.3 E-reserves/recommended books and reading lists 8
4.4 Pocket calculators 8
5 STUDENT SUPPORT SERVICES 8
5.1 myUnisa 8
5.2 Video clip 8
5.3 Tutors 9
5.4 Free computer and internet access 9
6 STUDY PLAN 9
7 ASSESSMENT 10
7.1 Assignments 11
7.2 Examination 13
7.3 Supplementary, aegrotat or special examinations 14
8 OTHER ASSESSMENT METHODS 14
9 OTHER MATTERS 14
9.1 Plagiarism 14
9.2 How do I redirect my myLife Unisa e-mail address to another account? 15
9.3 Health conditions such as HIV/AIDS 16
10 FREQUENTLY ASKED QUESTIONS 16
11 CONCLUSION 17
ANNEXURE A: ASSIGNMENT 1/2018 (FIRST SEMESTER) 18
ANNEXURE B: ASSIGNMENT 2/2018 (FIRST SEMESTER) 35
ANNEXURE C: ASSIGNMENT 1/2018 (SECOND SEMESTER) 39
ANNEXURE D: ASSIGNMENT 2/2018 (SECOND SEMESTER) 55
2
, TAX3702/101
1 INTRODUCTION AND WELCOME
We have pleasure in welcoming you as a student to the module, TAXATION OF INDIVIDUALS. We hope
that you will find your studies interesting and rewarding and that you will be successful in the examination.
Please read this tutorial letter carefully to orientate yourself with the requirements for this module.
This module is practical and therefore you will have to learn rules and how to apply them. This means that
you will have to start with your studies immediately as the semester is approximately 13 weeks long, and you
will need to give yourself time to practice what you learn. For your convenience, we include a proposed study
programme indicating the MINIMUM time you will have to put aside for each learning unit as well as the
specific outcomes and assessment standards for the module. The specific outcomes and assessment
standards for the module will be provided again in every learning unit.
There are several lecturers in the Department of Taxation’s undergraduate section who will be assisting you,
but your primary lecturers are Mr Ari Swanepoel and Mr Mark van Dyk.
How to get started on myUnisa
It is important that you use myUnisa regularly. This technological resource makes it easier to communicate
with the University, your lecturers and fellow students about your studies. By using myUnisa, you will be able
to submit your assignments electronically, access the library resources, get your assignment marks and take
part in activities, tasks and discussions relating to the contents of this module. Register TODAY and visit it
regularly.
In addition to registering on myUnisa, it is crucial that you activate your myLife e-mail address, as all your
official correspondence regarding this module will be sent to your myLife address and not your private e-mail
address. Please consult the Study @ Unisa guide on myUnisa for more information on the activation of your
myLife e-mail address as well as obtaining access to the myUnisa module website.
All study material is available online. You will receive some printed materials as a back-up. HOWEVER, DO
NOT WAIT FOR PRINTED MATERIALS BEFORE YOU START STUDYING.
2 PURPOSE AND OUTCOMES
2.1 PURPOSE
The aim of this module is to provide learners with a sound knowledge of the Income Tax Act, applicable to
individuals (natural persons) as well as the application of the principles governing individuals in order to
determine the income tax liability. The module encompasses the calculation of income tax liability including
the calculation of fringe benefits, retirement benefits, investment income and capital gains tax. Students will
also learn to calculate pre-paid taxes, both employees’ tax and provisional tax. The taxation of non-residents
also forms part of the content of the module. You will also deal with donations tax and estate duty.
3
, 2.2 SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA
We will assess whether you are competent in the taxation of individuals by means of case studies (real-life
situations). You will be required to apply a thorough theoretical knowledge to the calculation of the tax liability
of natural persons, both resident and non-resident correctly in terms of the South African Income Tax Act.
You will also be required to apply a thorough theoretical knowledge to the calculation of donations tax and
estate duty correctly.
The assessment will be conducted in terms of the following specific outcomes:
SPECIFIC OUTCOME 1:
Students must be able to demonstrate a well-rounded and systematic knowledge base in determining the
total net tax liability in terms of the Income Tax Act as it applies to an individual resident in South Africa.
Assessment Criteria
Students are competent if evidence shows that they are able to:
1.1 discuss and calculate the gross income and special inclusions of an individual
1.2 identify and apply exempt or partially exempt income
1.3 identify, calculate and apply the general, specific and prohibited deductions
1.4 calculate and apply the taxable capital gain/loss of an individual
1.5 calculate the net normal tax liability
1.6 calculate the tax liability in respect of lump sums
1.7 identify the tax status of insolvent persons
SPECIFIC OUTCOME 2:
Students must be able to demonstrate an understanding and knowledge of the total net tax liability, in
terms of the Income Tax Act, as it applies to an individual who is considered a non-resident in South Africa
for taxation purposes, as well as an ability to evaluate and apply this knowledge.
Assessment Criteria
Students are competent if evidence shows that they are able to:
2.1 apply the source rules for different types of income
2.2 apply exemptions applicable for different types of income
2.3 calculate net normal tax liability and withholding taxes
SPECIFIC OUTCOME 3:
Students must be able to demonstrate an ability to gather, process and apply information in the context
of employees’ tax and provisional tax in terms of the Income Tax Act.
Assessment Criteria
Students are competent if evidence shows that they are able to:
3.1 calculate employees’ tax
3.2 calculate provisional tax
3.3 apply penalties and interest in respect of provisional tax
4
