Kiara Malholtra $($Kiara$),$ a South African resident, aged $65$ and married out of community of

property, commenced employment with Fresseme Hair Products $($Pty$)$ Ltd $($Fresseme$)$ on $1$ March

$2005.$ She was one of the senior directors at Fresseme providing management expertise to various

subsidiaries within the Fresseme Group in South Africa. Due to the nature of the business,

Fresseme had allowed Kiara to use the company$$s motor vehicle to travel to the various clients to

promote their hair care products. The financial year of Fresseme ends on the last day of February.

On $28$ February $2023,$ Kiara retired from Fresseme having reached the age of $65$ years old. Her

remuneration proxy for the prior year was R$660000.$

Her receipts, accruals and expenses for the $2023$ year of assessment are as follows:

$$ A cash salary of R$40000$ per month

$$ It is compulsory for every employee of Fresseme to become a member of the Fresseme

Pension Fund. Kiara$$s monthly contribution to Fresseme Pension Fund is $10\%$ of her

monthly gross cash salary. Her employer also contributes $10\%.$

$$ An annual bonus of an equivalent to one$-$month salary received in December $2022$

$$ A pendant given to her as a farewell gift by her colleague. The value of the pendant was

R$3500.$

$$ Long service award from Fresseme of R$250000$ for serving the company for more than $15$

years.

$$ The free use of a new motor car, that was purchased by Fresseme at a retail market value

of R$450000($including VAT$),$ on $1$ March $2022.$ Kiara obtained the right to use this vehicle

from $1$ March $2022($the same date it was purchased by the company$).$ This vehicle was

under a maintenance plan.

Information related to the motor car also included:

o Fresseme purchased the motor car for business use and bears the full cost of the

vehicle$$s maintenance. Kiara is$,$ however, required to pay for the fuel for the private

use of the motor car.

o Since Kiara also owns an SUV that she uses in the evenings and on the weekends,

she has maintained full records of her use of the motor car from Luxury Hotels.

According to her records, from the logbook that she kept, Kiara travelled $15000$

$2$

kilometers for private purposes in respect of the motor car out of a total of $45000$

kilometers travelled during the $2023$ year of assessment. She incurred R$8000$ in the

$2023$ year of assessment paying for the fuel for her private use of the motor car.

$$ A $10-$day holiday at a resort in Cape Town owned by Fresseme. The accommodation is let

to non$-$employees at a rate of R$450$ a person per day. Kiara with her husband stayed at this

apartment for $10$ days in the month of January $2023.$

$$ The free use of a fully furnished three$-$roomed flat owned by Fresseme, in Durban. Although

Kiara does not pay any rental for the use of the flat, she is obliged to pay for the electricity

and water. She incurred R$15000$ in the $2023$ year of assessment paying for the electricity

and water. Kiara does not have a right of option or pre$-$emption granted to her that could

result in the ownership of the accommodation. Kiara does not have a controlling interest in

Fresseme.

$$ Fresseme extended a loan of R$200000$ to Kiara for the period $1$ April $2022$ to $1$ June $2022.$

The loan was repaid on $1$ July $2022.$ Interest of $8\%$ was charged. The official rate of interest

was $10\%,$ and the Commissioner was satisfied that this was the official rate during this

period.

$$ A $$grooming$$ allowance of R$3000$ a month, to cover Kiara$$s clothing, facials, and hairstyling

costs for her various meetings across the country. Kiara is expected to appear $$groomed$$ as

this is the Beauty industry $$norm$$ and helps to promote the products should clients see

Kiara$$s hair looking bouncy and healthy. During the $2023$ year of assessment, Kiara spent

R$15000$ on clothing, R$5000$ on hairstyling and R$4000$ on facials.

$$ Kiara$$s other receipts, accruals, and expenditure for the $2023$ year of assessment are as

follows:

o Local interest of R$45000$ accrued to Kiara from a savings investment account.

o Dividends of R$17000$ accrued to Kiara.

$$ Kiara contributes R$3500$ a month to a medical aid for herself, her husband and their son,

Varun.

$$ During the $2023$ year of assessment, Kiara paid R$15000$ in qualifying medical expenses,

that were not recovered from her medical aid.

$3$

Required:

Q$1\mathrm{.}1$ Calculate the Tax Payable or refundable from SARS for Kiara Malholtra

for her $2023$ year of assessment?