Jack Khaki is 61 years old. His wife, Jessica, is 58 years old. Both of them are residents of the Republic. Their receipts, accruals and expenses are as follows: Salary - Jack Khaki 360 000 Directors' fees - Jack Khaki 60 000 Value of company car usage - Jack Khaki (fringe benefit) 31 500 Employer's contribution to medical scheme - Jack Khaki 118 600 Local dividends from South African companies - Jack Khaki 12 400 Non-capital expenditure in producing local dividends 13 900) Interest - Jack Khaki (not from tax free investments) 32 700 Salary - Jessica Khaki (Old Age Nursing Home at R11 800 a month) 141 600 Uniform allowance - Jessica Khaki - nurse's uniform at R500 a month 16 000 Trade profit - Jessica Khaki - Flower Boutique 126 880 Pension fund contributions - Jack Khaki (21 600) Pension fund contributions - Jessica Khaki 7080) (Jack Khaki's pension fund contributions are based solely on his salary of R360 000 and those of Jessica Khaki on her salary of R141 600 from the Old Age Nursing Home.) Medical scheme contributions - Jack Khaki (14 400) Qualifying medical expenses paid and not recovered from the medical scheme - Jack Khaki (21 230) Jack Khaki's membership of the medical scheme is for himself and for his wife (Jessica). YOU ARE REQUIRED TO: 1. Calculate the taxable income of Jack Khaki for the current year of assessment. (10) 2. Calculate the normal tax liability of Jessica Khaki for the current year of assessment. (10) TAX TABLE Tax Income (R) Rate of Tax (R) 0 - 216 200 18% of taxable income 216 201 - 337 800 38 916 +26% of taxable income above 216 200 337 801 - 467 500 70 532 + 31% of taxable income above 337 800 467501 - 613 600 110 739 + 36% of taxable income above 467 500 613 601 - 782 200 163 335 + 39% of taxable income above 613 600 782 201 - 1656 600 229 089+ 41% of taxable income above 782 200 1656 601 and above 532 041 +45% of taxable income above 1 656 600 O U Jack Khakhi 360 000 Salary Director's fees U Car usage value (benefit or advantage of employment) [2] Medical benefit [3] Local dividends 2 400 Interest 32 700 Exempt income Local dividends [4] Interest (5) 479 000 Less pension fund contributions (R21 600) The deduction is limited to the greater of 161 171 [8] 181 457 400 Less dividends expense 19] Taxable income 457 400 Jessica Khakhi [10] Salary Uniform allowance [111 Trade profit [12] Less exempt income Uniform allowance [13] 1268 480 Less pension fund contribution The deduction is limited to the greater of (14) [15] [16] [ Taxable income 261 400 On R216 201 [17] On the balance 26% [18] 150 668 Primary rebate [] [19] Tax liability 34 954 Jack Khaki is 61 years old. His wife, Jessica, is 58 years old. Both of them are residents of the Republic. Their receipts, accruals and expenses are as follows: Salary - Jack Khaki 360 000 Directors' fees - Jack Khaki 60 000 Value of company car usage - Jack Khaki (fringe benefit) 31 500 Employer's contribution to medical scheme - Jack Khaki 118 600 Local dividends from South African companies - Jack Khaki 12 400 Non-capital expenditure in producing local dividends 13 900) Interest - Jack Khaki (not from tax free investments) 32 700 Salary - Jessica Khaki (Old Age Nursing Home at R11 800 a month) 141 600 Uniform allowance - Jessica Khaki - nurse's uniform at R500 a month 16 000 Trade profit - Jessica Khaki - Flower Boutique 126 880 Pension fund contributions - Jack Khaki (21 600) Pension fund contributions - Jessica Khaki 7080) (Jack Khaki's pension fund contributions are based solely on his salary of R360 000 and those of Jessica Khaki on her salary of R141 600 from the Old Age Nursing Home.) Medical scheme contributions - Jack Khaki (14 400) Qualifying medical expenses paid and not recovered from the medical scheme - Jack Khaki (21 230) Jack Khaki's membership of the medical scheme is for himself and for his wife (Jessica). YOU ARE REQUIRED TO: 1. Calculate the taxable income of Jack Khaki for the current year of assessment. (10) 2. Calculate the normal tax liability of Jessica Khaki for the current year of assessment. (10) TAX TABLE Tax Income (R) Rate of Tax (R) 0 - 216 200 18% of taxable income 216 201 - 337 800 38 916 +26% of taxable income above 216 200 337 801 - 467 500 70 532 + 31% of taxable income above 337 800 467501 - 613 600 110 739 + 36% of taxable income above 467 500 613 601 - 782 200 163 335 + 39% of taxable income above 613 600 782 201 - 1656 600 229 089+ 41% of taxable income above 782 200 1656 601 and above 532 041 +45% of taxable income above 1 656 600 O U Jack Khakhi 360 000 Salary Director's fees U Car usage value (benefit or advantage of employment) [2] Medical benefit [3] Local dividends 2 400 Interest 32 700 Exempt income Local dividends [4] Interest (5) 479 000 Less pension fund contributions (R21 600) The deduction is limited to the greater of 161 171 [8] 181 457 400 Less dividends expense 19] Taxable income 457 400 Jessica Khakhi [10] Salary Uniform allowance [111 Trade profit [12] Less exempt income Uniform allowance [13] 1268 480 Less pension fund contribution The deduction is limited to the greater of (14) [15] [16] [ Taxable income 261 400 On R216 201 [17] On the balance 26% [18] 150 668 Primary rebate [] [19] Tax liability 34 954