Chantel Samuel is a 24-year-old female who is unmarried. She currently resides in Johannesburg, South Africa and began working on the 1st of August 2018.During the current year she had earned a salary of R230 000 and interest on her fixed deposit of R29 800. She belongs to a medical aid fund to which she contributed R5 000 for the full current year of assessment, her employer also contributed R5 000 for the period during which she was employed. Chantel also made retirement fund contributions of R3 500 for the current year of assessment. A few years ago, she had inherited a beautiful house, situated in Cape Town, from her grandfather which she rents out and during the year she received a rental amount of R240 000 for the year of assessment and she had incurred maintenance expenses of R210 000 which are tax deductible.
Chantel had incurred medical expenses of R1 600 for the year and this was not covered by her medical aid. Her employer had made a deduction of R27 829 for employee’s tax and Chantel made a provisional payment of R18 200 for the 2020 year of assessment. You are required to calculate Chantel’s net tax liability for the current year of assessment.

Andile Bheki, aged 45, is a South African resident. He owns a business that deals mainly with brick laying and distribution in
Tugela Ferry.

The following expenditure were incurred by Andile on behalf of his business during the 2021 year of assessment:

REQUIRED:
In terms of the general deduction formula, discuss the deductibility of each expenditure incurred by Andile Bheki for his business for the current year of assessment. Quote relevant case law to support your argument.

One of his trucks was involved in an accident while delivering bricks to a client. The accident resulted in the injury of two employees and they had to be admitted to a local hospital. Due to this incident, Andile paid R70 000 medical costs on behalf of his employees that were involved in accident. (1)
1.
2. Andile paid an amount of R120 000 for salaries and wages of his employees. (1) Andile erected a billboard (costing R35 000) on the pavement next to his business premises for advertisement purposes for his business. He also paid a total advertisement fee of R40 000 to the local newspaper for the advert of his business that will appear every Monday in the newspaper. He never consulted with the local municipality before he erected the billboard. The municipality instructed him to remove the billboard because it was obstructing pedestrians.

He was fined R8 000 by the municipality for this. He also paid R2 000 for the billboard to be removed and put inside his business premises. (7)