TAX1501 ASSESSMENT 3 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS

Question 15 Alice Wonderland is not normally a resident in South Africa. As part of her work she
Answer saved needs to be in South Africa each year. She was in South Africa for more than 91
Marked out of 1
days in the previous five years of assessment. She was also in South Africa for
more than 915 days in the previous five years of assessment. In the current year of
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assessment due to the Covid pandemic, she has been outside of South Africa for a
question
continuous period of more than 330 days. YOU ARE REQUIRED to determine if Alice
will be considered a South African resident for income tax purposes for the current
year of assessment when considering the following information.

Select one:
a. Yes, Alice will be considered a South African resident as the Covid
pandemic does not change the fact that she would have been in South
Africa if she was able to travel to South Africa.
b. No, she will not be considered a South African resident as she was outside
of South Africa for a continuous period of more than 330 days in the
current year of assessment.
c. Yes, she will be considered a South African resident as she was present in
South Africa for more than 915 days in the previous five years of
assessment.
d. Yes, Alice will be considered a South African resident as she was present
in South Africa for more than 91 days in each of the previous five years of
assess­ment.
Clear my choice



thse threee conditions should all be met
1) physically present for more than 91 days in current year
2) physicaly present for more than 91 days for each of the pas
5 years
3) physicaly present for more than 915 days in the past 5
years

,Question 14 Which of the following expenses would not be allowed as a deduction? You may
Answer saved assume that these expenses were incurred by a trading business.
Marked out of 1

Flag a. Income tax penalties
question
b. Insurance premiums
c. Security system fees
d. Business Phone line costs

Clear my choice

,Ruth is 35 years old. She received the following interest income during the current year of assessment:

Interest received from South African bank of R11 000
Interest received from a South African tax-free savings account of R12 000
Interest received from a foreign bank account of R15 000

YOU ARE REQUIRED to determine the total amount which will be exempt (include the tax free investment in
your answer) when determining Ruth’s taxable income for the current year of assessment.

Select one:
11000+12000
a. R23 000
b. R35 800
interest from foreign bank is not exempt
c. R38 000
d. R12 000

, Question 12 Pabs Mashile, a 38-year-old unemployed South African resident. During the current
Answer saved year of assessment, he received the following investment income (it arose from an
Marked out of 1
inheritance he received):

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South African dividends of R35 000
question
Foreign dividends of R120 000 (the foreign entity is listed on the Johannesburg
Securities Exchange)
Interest on a South African bank account of R50 000.


YOU ARE REQUIRED to determine his taxable income for the current year of
assessment.

Select one:
a. R26 200
b. R0
c. R50 000
d. R79 533

Clear my choice 50000-23800
23800 is the interest exemption on local interes