4.1 Bongani Ndamase retired on 31 December 2022 at the age of 65. He received the following information regarding the lump sum that his pension fund will pay him on date of retirement:

A lump sum amount of R1 845 000 (before tax) will be payable to him.

During the 30 years that he was a member of the fund, R45 000 of his own contributions were not allowed as deductions in terms of section 11F of the Act.

Bonganis taxable income excluding the lump sum amount for the current year of assessment is R750 000. He did not previously receive any lump sum payments.

REQUIRED: Calculate the tax that Bongani will pay on the lump sum received from the pension

fund. (5 Marks)

4.2 National Rentals CC trades as an agent for property owners who let their properties to tenants. Its activities include collecting rentals and maintaining some properties situated offshore. One of the properties National Rentals CC manages is a block of flats situated in Malta. The separate units within this property belong to different persons. The following persons each earned rentals the equivalent of R85 000 during the 2021 year of assessment from this block of flats. Each person is concerned that he may be liable for normal tax in South Africa.

REQUIRED: Discuss the gross income requirements as well as the physical presence test.

(10 Marks)

Walter Wentworth (5 Marks)

Walter Wentworth lives in South Africa. He was on holiday in Australia for the last 92 days of the 2021 year of assessment.

Venicia Ltd (5 Marks)

Venicia Ltd is incorporated in South Africa. It carries on business in Europe. Its place of effective management is in Lucerne, Switzerland. Its year of assessment ends on the last day of February.