Gerald De Beer is a $38-$year$-$old vibrant, outgoing young man who has been employed as a digital

artist at InnovateTech Solutions $($Pty$)$ Ltd $("$InnovateTech$")$ since $1$ May $2019.$

Details of Gerald$$s remuneration and expenses for the year ended $29$ February $2024$ are as follows:

$$ A cash monthly salary of R$80000.$

$$ Gerald receives a monthly travel allowance of R$5000.$ He drives a Toyota Corolla sedan valued

at R$300000($including VAT$).$ No logbook details were provided to InnovateTech as Gerald did

not maintain an accurate logbook$.$ On average, he drives a total of $3100$ kilometres per month,

with approximately $2200$ kilometres for business purposes. No deduction will be allowed by

SARS as a result of no logbook being maintained.

$$ InnovateTech provides gym membership benefits to its employees, including Gerald. As part of

their wellness program, InnovateTech covers a portion of the gym membership fees for

employees who choose to participate. Employees are responsible for a nominal monthly charge

of R$100,$ which is deducted directly from their payslip. Gerald was a member of a nearby fitness

centre for the entire year of assessment, with a monthly membership cost of R$550.$

$$ In addition, Gerald contributes R$2400$ per month to InnovateTech$$s pension fund. The

company also contributes R$2400$ per month on Gerald$$s behalf.

$$ Gerald discovered his talent for attentive listening and effectively addressing the concerns of

his colleagues and clients. He completed a master course in life coaching in $2020.$ With his

newfound expertise, Gerald started his own life coaching business in the same year, offering

consultations both online and in person at a rented office in his local town.

Revenue relating to Gerald$$s life coaching business amounted to R$462700$ for the year ending

$29$ February $2024.$ During the year, Gerald incurred expenses directly related to his business

amounting to R$136200.$

$$ Gerald is a provisional taxpayer. He received his $2022$ assessment with taxable income of

R$1060000$ on $01$ September $2022$ and the $2023$ assessment was received on $1$ December $2023$

reflecting taxable income of R$1330000.$

$$ Gerald accurately calculated and paid his first provisional tax payment at R$15459$

Q$\mathrm{.}2\mathrm{.}1$ Calculate the monthly employees$$ tax withheld by InnovateTech Solutions $($Pty$)$

Ltd from Gerald De Beer$$s remuneration.

Show all calculations and round off all amounts to the nearest rand.

Include nil value items in your answer, provide a reason for a nil value.

$(8)$

Q$\mathrm{.}2\mathrm{.}2$ Calculate Gerald$$s second provisional tax payment for the $2024$ year of

assessment, assuming that he based this payment on an estimated taxable

income of R$1200000.$

$(3)$

Q$\mathrm{.}2\mathrm{.}3$ Calculate if any further tax payments are required by Gerald for the $2024$ year of

assessment and determine the final date of payment to avoid s$89$quat interest.

$(7)$

Q$\mathrm{.}2\mathrm{.}4$ Determine whether any penalty with regards to an underestimate may be

applied to Gerald.