Bongani (aged 69 years) is currently employed by Vick Limited. Monthly salary is R29 166.67, and he earned local interest of R3 250 each quarter, local dividends of R2 750 bio-annual, an annual bonus of R20 000 and he made contributions of R25 000 to the Vick Limited pension fund during the year of assessment. Bongani won R5 500 in the South African lottery on 27 February 2023. Vick Limited paid R5 000 employees tax on behalf of each employee for the year of assessment.

Show all your calculations and round off to the nearest Rand. Question 1 1.1 Using the above information, calculate the net tax payable/refundable for the year ended 28 February 2023. (40 marks)

1.2 Distinguish between the tax assessment for a business and the tax assessment for an individual.(6)

1.3 Bongani sold his personal old car to Ludwe on 1 March 2022 and received R144 000 in cash. Bongani was born in South Africa and has lived his entire life. Indicate whether Bongani will have to include the R144 000 in his gross income for the year ended 28 February 2023. When answering the question, clearly refer to the requirements of the gross income definition. (6)

TOTAL MARKS 52