TAX3761 _2021_Assignment_2_

PLEASE NOTE: 1. The mark you obtained for this assignment will form 20% of your year mark for this module. Your year mark will contribute 30% to your final mark. 2. Please follow the instructions in the required part of the question(s) carefully to ensure that you obtain the maximum marks for this assignment. Please note that only certain subsections of this assignment may be marked. 3. All subsections of the assignment must be answered. 4. All calculations must be shown. 5. This assignment covers learning units 10 – 15, as contained in tutorial letter 104. Work carefully through the relevant tutorial matter before you attempt the assignment. The references to the chapters in the textbook are provided in the respective learning units. This assignment will assess your ability to answer the case study questions. 6. No extension will be granted for the late submission of this assignment and no correspondence or telephone conversations will be conducted in this regard. 7. Please follow the instructions for the submission of a written assignment carefully. INSTRUCTIONS FOR SUBMISSION OF WRITTEN ASSIGNMENTS Written assignments should be submitted electronically via myUnisa, in a PDF format. The assignment must be submitted as only one PDF file. The PDF file must not be a read only file. Any format other than PDF will not be accepted by myUnisa. SHOW ALL CALCULATIONS. MARKS ARE ALLOCATED TO EACH STEP IN A CALCULATION AND WE CANNOT THEREFORE ALLOCATE MARKS IF YOU ONLY PROVIDE US WITH AN INCORRECT TOTAL FIGURE. WHERE ANY ITEM IS EXEMPT FROM TAX, OR NOT ALLOWED AS A DEDUCTION, DO NOT SIMPLY LEAVE IT OUT. SHOW THE ITEM AS A "NIL" IN THE MONEY COLUMN, GIVING A BRIEF REASON FOR THIS. This study source was downloaded by from CourseH on :51:11 GMT -05:00 This study resource was shared via CourseH 3 TAX3761/Assign 2 ASSIGNMENT 2: TAX3761 QUESTION 1 (80 marks, 144 minutes) Gift (45 years old) and Portia (40 years old) are married in community of property. They have two minor children that are still in school. Gift is a South African resident and has been working as a sales representative for the past 20 years, for Organic Production and Distribution, a South African company that produces and distributes organic materials to farmers and nurseries, to enhance the growth process of crops, trees and plants. Gift’s information below is relevant to the 2021 year of assessment: Notes R Income/Receipts Total salary received from employer 600 000 Total commission income received from employer 1 200 000 Entertainment allowance received from employer Loan received from employer 1 2 18 000 300 000 Travel allowance received from employer 3 240 000 Use of employer equipment 4 ? Purchase of materials from employer for use in garden at let residence Gross rental receipts Foreign dividend received (not from a tax-free investment) 5 6 7 ? ? 3 600 Expenses/Contributions Entertainment expenditure Home office expenditure Rental expenditure Medical 1 6 6 8 20 000 ? ? ? Retirement fund contributions 9 ? Notes: 1. Entertainment allowance and entertainment expenditure Gift entertained customers on a frequent basis and received an entertainment allowance of R1 500 per month. He