TAX3702 ASSIGNMENT 5 OF 2021
Question 1
Assessments:
2020 - cannot be used as it was received after the due date (31 August 2020).
2019 - cannot be used as it was received less than 14 days before due date.
2018 - use as basic amount as received more than 14 days before due date.
Adjustment, as the period from 28 February 2018 to 31 August 2020 is more than 18 months.
Basic amount 549 461
less taxable capital gain - 154 419
395 042
Adjustment (395042*8%*3) 94 810
489 852
Normal tax per tax tables 121 539
(105429+(489852-445101)*36%
less Rebates and credits:
Primary rebate - 14 958
106 581
Employee tax paid - 11 262
95 319
1st Provisional tax (95319/2) 47 660
, Question 2
Note: Explanation Calculation
Gross cash salary is remuneration as defined in the income tax act. The gross
1 R55 000
salary for February shall be included in remuneration for employee tax purpose.
The amount to be included for remuneration purposes is shown undr calculation
column.
The right to use an employer owned vehicle is a fringe benefit, hence
remuneration. The value of the benefit for February has to be determined and be
included in gross income. The value of private use shall be based on the
2
determined value of the vehicle (290000)The benefit shall be calculated in terms
of the income tax act. This fringe benefit will increase the balance of
remuneration. The calculation is shown on the calculation column.
Cellphone allowance will not be remuneration as defined as the cellphone will be
3 used only for business call. Nil effect on balance of remuneration
Subsidised parking space will not be a fringe benefit, hence not included in
balance of remuneration, as the parking is for employment purposes - at the
4 employer's premises. Nil effect on balance of remuneration
The employer contributions for February will be a fringe benefit, hence be
R3 500
included in remuneration for Gracious for employee tax purposes. This will
increase her balance of remuneration. The amount to be included on the balance
5 of remunerarion is shown under calculation column
Question 1
Assessments:
2020 - cannot be used as it was received after the due date (31 August 2020).
2019 - cannot be used as it was received less than 14 days before due date.
2018 - use as basic amount as received more than 14 days before due date.
Adjustment, as the period from 28 February 2018 to 31 August 2020 is more than 18 months.
Basic amount 549 461
less taxable capital gain - 154 419
395 042
Adjustment (395042*8%*3) 94 810
489 852
Normal tax per tax tables 121 539
(105429+(489852-445101)*36%
less Rebates and credits:
Primary rebate - 14 958
106 581
Employee tax paid - 11 262
95 319
1st Provisional tax (95319/2) 47 660
, Question 2
Note: Explanation Calculation
Gross cash salary is remuneration as defined in the income tax act. The gross
1 R55 000
salary for February shall be included in remuneration for employee tax purpose.
The amount to be included for remuneration purposes is shown undr calculation
column.
The right to use an employer owned vehicle is a fringe benefit, hence
remuneration. The value of the benefit for February has to be determined and be
included in gross income. The value of private use shall be based on the
2
determined value of the vehicle (290000)The benefit shall be calculated in terms
of the income tax act. This fringe benefit will increase the balance of
remuneration. The calculation is shown on the calculation column.
Cellphone allowance will not be remuneration as defined as the cellphone will be
3 used only for business call. Nil effect on balance of remuneration
Subsidised parking space will not be a fringe benefit, hence not included in
balance of remuneration, as the parking is for employment purposes - at the
4 employer's premises. Nil effect on balance of remuneration
The employer contributions for February will be a fringe benefit, hence be
R3 500
included in remuneration for Gracious for employee tax purposes. This will
increase her balance of remuneration. The amount to be included on the balance
5 of remunerarion is shown under calculation column
