Nov-15
(a) SOLUTION TO QUESTION 1 PART A
Kgotso
YEAR OF ASSESSMENT
Salary (R) 750 000
Right of use (R )
Value of Fringe benefit-228000 x 0,85 x 3,5%x12 81 396
Less
Business travel - 81 396 x 10 000/18 000 (45 220)
Maintenance - 5 000 x 8 000/18 000 (2 222)
Fuel - 8 000 x 1.16 (9 280)
Taxable fringe benefit 24 674 24 674
Protective clothing 4 000
Exempt (4 000)
- -
Long service award - Voucher (R ) 6 000
Exempt portion (5 000)
1 000 1 000
Building material
Trading stock for employer - therefore use cost 20 000
Less payment made (20 000)
- -
Motorbike - capital in nature -
Foreign dividends 3 200
Exemption - 25/45 x 3200 (1 778)
1 422 1 422
Foreign interest 1 056
Local interest 25 800
Exemption (23 800)
2 000 2 000
Medical Fringe benefit (R ) 24 000
Subtotal 804 152
Past period pension fund contribution 2 000
Current period pension fund contribution 65 000
Tax 3702 Oct/Nov 2015
(a) SOLUTION TO QUESTION 1 PART A
Kgotso
YEAR OF ASSESSMENT
Salary (R) 750 000
Right of use (R )
Value of Fringe benefit-228000 x 0,85 x 3,5%x12 81 396
Less
Business travel - 81 396 x 10 000/18 000 (45 220)
Maintenance - 5 000 x 8 000/18 000 (2 222)
Fuel - 8 000 x 1.16 (9 280)
Taxable fringe benefit 24 674 24 674
Protective clothing 4 000
Exempt (4 000)
- -
Long service award - Voucher (R ) 6 000
Exempt portion (5 000)
1 000 1 000
Building material
Trading stock for employer - therefore use cost 20 000
Less payment made (20 000)
- -
Motorbike - capital in nature -
Foreign dividends 3 200
Exemption - 25/45 x 3200 (1 778)
1 422 1 422
Foreign interest 1 056
Local interest 25 800
Exemption (23 800)
2 000 2 000
Medical Fringe benefit (R ) 24 000
Subtotal 804 152
Past period pension fund contribution 2 000
Current period pension fund contribution 65 000
Tax 3702 Oct/Nov 2015
