Kerry Smith ("Kerry") is a marketing manager for Fashion Designs Ltd, a South African company and a registered VAT vendor. She has been working for Fashion Designs Ltd for the last 30 years. Kerry is a South African resident and lives in Rondebosch, Cape Town. Kerry, age 58, is married to Ryan, aged 65, and they have two children aged 22 and 24. Both are full-time students. Kerry and Ryan are married out of community of property. The following information relates to the year of assessment ending 28 February 2023: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Kerry received a cash salary of R80 000 per month. She also received a performance bonus of R300 000 and a thirteenth cheque, equivalent to one month's cash salary. Kerry was provided with the exclusive use of a motor vehicle from 1 March 2022. Fashion Designs Ltd purchased the car for R842 000 (including VAT) on 1 January 2020, the same as its retail market value. The motor vehicle was purchased with a full maintenance plan. The maintenance plan was for 2 years only. Kerry does not contribute towards the maintenance costs but had to pay R1 060 to renew the motor car's license. Her employer bears all other costs in respect of the motor vehicle. Kerry travelled 20 000 kilometers in this motor vehicle up to 28 February 2023, of which 8 500 kilometers were travelled for business purposes, as shown by her logbook, and 6 000 kilometers travelled from home to her office. A reimbursive entertainment allowance was given to Kerry, as she is required to entertain clients regularly. She was reimbursed for entertaining expenses incurred of R8 000. Kerry is a member of her employer's pension fund. Her employer and Kerry each contribute 7.5% of her cash salary only to a pension fund. She contributed R6 800 per month towards a retirement annuity fund. (Assume Kerry's remuneration for the 2023 year of assessment, correctly calculated, is R1 366 334.) She also has the right to use a company cell phone with unlimited call minutes. Kerry estimates that she uses her cell phone for 80% business use. The company's actual cost of the cell phone amounted to R14 600. Kerry is the primary member of the family's medical aid scheme. Her husband Ryan and their two children are her dependents on the scheme. She contributes R5 000 per month, and Fashion Design contributes R2 000 per month on her behalf. Kerry paid R32 000 in qualifying medical expenses during the 2023 year of assessment. The medical aid refunded her an amount of R18 000 in respect of the medical expenses she paid out of her pocket. Section 6B - Part B medical fees credit amounts to R2 670. From 1 October 2021, she received the use of a five-bedroomed employer-owned house in Pinelands in Cape Town. The house is owned by Fashion Design. The value of the fringe benefit amounts to R145 988 for the 2023 year of assessment. Kerry did not pay anything towards the accommodation. Kerry received a subsistence allowance of R500 per day away from home due to local travel. Kerry spent 10 days away from home on local travel. The subsistence allowance is paid to Kerry to cover the costs of meals and other incidental costs while away from home. Kerry has kept an accurate record of her meals and incidental costs incurred while away from home. She also has all related invoices. The total amount of these costs amounted to R4 800. Fashion Designs Ltd granted each Kerry's two children a bursary of R25 000. Both her children are studying at university. Only children of employees qualify as beneficiaries of bursaries from Fashion Designs. The bursary is bona fide. In December 2022, Kerry and her family went on a two-week holiday to Orlando, America. Kerry could choose some clothes from the Fashion Design's warehouse for her trip. She took clothes with a cost price of R3 700 (fringe benefit value) and paid only R500 for them. Fashion Designs paid the rental due for the self-catering cottage they stayed in at Orlando. The regular rate is R8 000 per person for two weeks, but Fashion Designs booked on a special offer and paid only R6 500 per person. Kerry had to pay for their meals, which amounted to R15 000. Kerry also borrowed Fashion Design's state-of-the-art camera for the two weeks. The original cost price was R18 000 when purchased in January 2021, and the market value in December 2022 was R16 500. The amount of the taxable fringe benefit value for the camera is correctly calculated to be R95. Fashion Design offers employees a free nail and manicure service to ensure their hands always look good. Fashion Design pays R150 per employee for this service. Kerry used the service 8 times during the 2023 year of assessment. Kerry received an annuity of R1 500 a month for the 2023 year of assessment. She purchased the annuity from PSG Investments on 1 June 2021 for R240 000 for 20 years and received the first payment on 30 June 2021. She contributed R20 000 on 1 June 2022 towards the SPCA, a registered PBO. She received the required certificate for her donation. Required: Calculate the normal tax liability of Kerry Smith for the year of assessment ended 28 February 2023.