Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[30 MARKS] QUESTION 1 (10) Part A Whmed Whinze is a 42 year-od sngle male resident of South Africa. He inherited a 5 bedroom house
[30 MARKS] QUESTION 1 (10) Part A Whmed Whinze is a 42 year-od sngle male resident of South Africa. He inherited a 5 bedroom house situated in Dundee from nis grandfather. As he works in Durban he decided to sell the house for R1 350000 . The value of the house was estimated at R1 200000 by the sroperty valuabr. The house was sold on 31 August 2021. Immediately after he received the money from the sale of the house he invested it with a private local compamy, Coral Property Investment. By 28 Ferruary 2022 , ne earned a dividend of 4% based on his to al investment. broe VHT. Required: Dscuss with reference to the gross income definion whether or not the amounts received by Ahmed will form part of his gross ncome br the year ended 28 February 2022. Part B (20) The fo owing information of Ahmed relates to the 2023 year of assessment: Income He earned a saary of R480000 Net rentas of PEO 000 vere earned fom a residential fiat: Inerest of R32 000 was received fom a fixed de post. In addion, foreign dividends of $800 wes earned, after a withindding tax of 10% was deducted. In terms of section 250/3), he elected that the foreign dividends be translated into fand by app ying the average exchange rate. Assume the average exchange rate for the 2023 year of assessment to be $1 : R 17.50 . Expenses Armed contributed R7 500 a month to a medical scheme for himself and his mum who resides with him. He incurred no cut of pocket medical expenses for the year. Ahmed does not beiong bo any retrement nor pension fund. He sad R8 500 provisional tax for the year. Required: Caculate Armed Miknze's net tax lablity for the 2023 year of assessment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started