Fabian Julies $($Fabian$)(63$ years old$)$ is the marketing manager for a South African bakery company $($Bakery Bonanza $($BB$)).$ Fabian does not own any of BB$$s equity shares. Fabian is married out of community of property to Marianne. Marianne owns a bakery business in her own name. They have a $24-$year$-$old daughter $($Shamsi$)$ and a $19-$year$-$old son $($Douglas$).$ Shamsi is married, studies full$-$time at a public educational institution $($approved by the Commissioner$),$ works part$-$time as a model, is partially dependent on her parents, she, and her husband $($James$,$ a part$-$time student$)$ lives in Fabian$$s flat and her modelling income is below the tax threshold. Douglas commenced with an internship as a baker at Marriane$$s bakery, lives with his parents, is partially dependent on them and his income is below the tax threshold.

Details of Fabian and Marianne$$s income$/$receipts$/$benefits and expenses$/$contributions for the $2024$ year of assessment are as follows:

Notes R

Income$/$receipts$/$benefits

Salary and bonus $1400000$

Bursary $1?$

Reimbursement of travel expenses $($section reference to be provided$)2?$

Subsidy in respect of home loan $($par$.$ reference to be provided$)3?$

Bakery business taxable income $41200000$

Rental of flat $5?$

Foreign dividend $($section reference to be provided for exemption, if applicable$)$

$($not from a tax$-$free investment or collective investment scheme$)63000$

Expenses$/$contributions

Medical expenditure $7?$

Current contributions to a retirement fund $8?$

Notes:

$1.$ Bursary

BB provided Fabian$$s son$-$in$-$law, James, with a bursary of R$30000,$ based on merit, to study towards a honours degree $($NQF level $8)$ at a recognised educational institution, on condition that the bursary must be repaid if non$-$compliance occurs. James earned a total remuneration package of R$560000$ for the $2024$ tax year.

$2.$ Reimbursement of travel expenses

BB reimburses Fabian R$8\mathrm{.}44$ per kilometre when he uses his own motor vehicle for business travelling. His motor vehicle cost R$350000($including VAT$)$ on $1$ March $2022,$ when he purchased it$.$ The motor vehicle$$s total running expenses for the year amounted to R$36000.$ Fabian kept an accurate logbook for his business travelling, which amounted to $6000$ km out of a total of $18000$ km travelled for the year $($section reference to be provided$).$

$3.$ Subsidy in respect of home loan

BB paid the Housing Bank on behalf of Fabian during the year, thereby assisting Fabian paying for his home loan with Housing Bank. Because of BB$$s payments to the Housing Bank, it charges Fabian a reduced rate of $11\%$ per annum on his home loan of R$700000,$ instead of its normal home loan rate of $13\%$ per annum.

Assume the REPO rate $($repurchase rate$)$ was $9\%$ per annum throughout the year of assessment $($par$.$ reference to be provided$).$

$4.$ Bakery business taxable income

Marianne owns a bakery in her own name which earned a taxable income of R$1200000$ for the year of assessment.

$5.$ Rental of flat

Fabian rented his $2-$bedroom flat to Shamsi and James for the year for R$6000.$ All the parties agreed that instead of Fabian charging a higher rental, Shamsi and James will also pay most of the expenses related to the flat $($except where indicated otherwise$),$ even though it is invoiced in Fabian$$s name.

The costs that Shamsi and James incurred for the year were as follows: R

Rates and taxes $8000$

Levies $10000$

Replacement of old stove $7000$

Electricity $($in Shamsi and James$$ name$)14400$

Fitment of awning $($roof$)$ to cover veranda $($paid by Fabian$)15000$

$6.$ Foreign dividend

Fabian received a foreign dividend from a company listed on the JSE Limited $($section reference to be provided for exemption, if applicable$).$

$7.$ Medical expenditure

Fabian is a member of a medical aid fund and Marianne, and Douglas are registered as dependants. No member of the family has a disability as defined in section $6$B$.$ Fabian$$s portion of forty percent $(40\%)$ of the total medical aid contributions amounted to R$72000$ for the year of assessment. BB paid the balance of sixty percent $(60\%)$ on his behalf.

$8.$ Current retirement fund contributions

BB and Fabian each made provident fund contributions of R$65000$ during the year of assessment. Fabian also made a once off contribution of R$162000$ towards a retirement annuity fund. You may assume that his gross remuneration for the year amounted to R$1600000,$ only for purposes of the retirement fund contribution deduction calculation. Fabian had a balance of disallowed retirement fund contributions of R$80000$ on $28$ February $2023.$ Calculate Fabian Julies$$ normal income tax payable after rebates and tax credits for the year of assessment ended $29$ February $2024.$ Provide reasons and substantiate in terms of the Income Tax Act, where an amount is excluded from taxable income, or not subject to tax, or not allowable as a deduction, with reference to all the information provided