Linda, a $68-$year$-$old South African resident, has been a full$-$time employee at Aqua Limited $($Aqua$)$ since $2005.$ She works at Aqua$$s Gauteng branch. The following information relates to Linda$$s $2024$ year of assessment:

$1.$ Linda earned a monthly salary of R$57000$ from Aqua for the period $1$ March $2023$ to $29$ February $2024(247$ working days$).$ Linda was obliged to work for a client of Aqua in America for a continuous period from $1$ April $2023$ until $31$ August $2023(113$ working days$).$

$2.$ After Linda returned from America, Aqua provided Linda with temporary residential accommodation in Gauteng from $1$ October $2023$ to $31$ December $2023$ before she relocated to Cape Town, South Africa, on $1$ January $2024.$ Aqua rented a furnished, $4-$bedroom property for R$13000$ per month for Linda. Linda was responsible for covering the electricity cost. Linda$$s remuneration proxy for the $2024$ year of assessment is R$500000.$

$3.$ Linda was transferred to Aqua$$s branch in Cape Town, South Africa on $1$ January $2024.$ Linda signed an agreement to lease a house in Cape Town from $1$ February $2024$ for a period of two years. Linda arrived in Cape Town on $1$ January $2024$ and stayed in a hotel from that date until $31$ January $2024,$ while waiting to move into her rental house. Aqua agreed to pay the hotel fees of R$18000$ as well as the transport cost of R$11000$ for Linda$$s belongings, which were kept in storage.

$4.$ Linda's daughter, Susan, commenced her studies at the University of Johannesburg, a recognised educational institution, on $1$ January $2024.$ Susan enrolled for an NQF level $6$ qualification degree. Aqua awarded Susan with a bone fide study bursary of R$45000$ on $1$ January $2024.$ Linda$$s remuneration proxy amounts to R$500000$ for the $2024$ year of assessment and her remuneration has not been reduced as a result of the granting of the bursary.

ANNEXURE I: FORMATIVE ASSESSMENT $2$

$96$ HTAX$230-1-$Jan$-$June$2024-$FA$2-$ELK$-$V$2-23012024$

$5.$ Aqua provides coffee and tea to all their employees at the different Aqua branches during business hours. The value of the coffee and tea that Linda enjoyed during the $2024$ year of assessment during working hours at the office amounted to R$8000.$

$6.$ Linda must contact Aqua clients on a regular basis, Aqua therefore paid R$10000$ to Telkom for all the calls Linda made during the $2024$ year of assessment. Linda is not required to reimburse Aqua for her personal phone calls. Linda$$s itemised billing indicates the following usage:

$$ Aqua client calls

$820$ minutes

$$ Personal calls

$2900$ minutes

$$ Total usage

$3720$ minutes

$7.$ Linda is the main member of Medi$-$Health Medical Scheme, a registered medical scheme under the Medical Schemes Act of $1998.$ Medi$-$Health Medical Scheme recognises both Linda and Susan as registered dependents in accordance with the rules of the medical scheme. During the $2024$ year of assessment, Linda contributed R$1700$ per month to the Medi$-$Health Medical Scheme in respect of herself and Susan for the full $2024$ year of assessment. Aqua also contributed R$1700$ per month to Medi$-$Health Medical Scheme on behalf of Linda and Susan. Medi$-$Health Medical Scheme covered and$/$or reimbursed all Linda and Susan$$s medical expenses they incurred during the $2024$ year of assessment.

$8.$ Linda holds $1200$ shares in an Australian company which declared and paid a dividend of R$12\mathrm{.}50$ per share on $31$ December $2023$ to all registered shareholders on that date.

$9.$ Linda received the following interest amounts during the $2024$ year of assessment:

$$ Interest of R$14500$ on a current bank account in America.

$$ Interest of R$12000$ on a current bank account in South Africa.

ANNEXURE I: FORMATIVE ASSESSMENT $2$

$97$ HTAX$230-1-$Jan$-$June$2024-$FA$2-$ELK$-$V$2-23012024$

$10.$ In terms of an annuity contract concluded with First Insurance on $1$ August $2023,$ Linda will receive R$6800$ per month for the next $10$ years. She paid R$800000$ to First Insurance on $1$ August $2023$ and received the first payment on $1$ September $2023.$ The total capital portion of the annuity received is R$14350$ during the $2024$ year of assessment.

$11.$ On $20$ December $2023$ Linda donated R$7000$ to the House of Angels, a qualifying section $18$A Public Benefit Organisation.

REQUIRED:

Calculate Linda$$s taxable income for the $2024$ year of assessment as per the appropriate tax framework applicable to natural persons.

Show all your calculations and round your answers to the nearest rand.

$(40$ marks$)$

Competency Framework Reference:

E$1\mathrm{.}2$

Interpretation of tax legislation

b$)$

Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation.

E$1\mathrm{.}3$

Application of tax legislation to calculate tax obligation

a$)$

Analyse the taxpayer$$s tax profile.

c$)$

Apply the relevant law to the facts, determine the tax position and compute the tax payable $($VAT or normal tax$)$ for individuals and companies.