Question
Mavuso is a 43 year old South African resident who was employed by Veg and Fruit limited , a South African company , until November
Mavuso is a 43 year old South African resident who was employed by Veg and Fruit limited , a South African company , until November 2022. On 30 November 2022 Veg and Fruit ceased its operations and pension fund that Veg and Fruit limited established for its employees close down. The Veg and Fruit pension fund paid out R80 000 to Mavuso during the year of assessment. All Mazu Mavuso fund contributions have been deducted in the determination of his taxable income. Mazu Mavuso also decided to join a retirement annuity fund , to which he made a total contribution of R70 000 during the 2023 year of assessment. for the 2023 year of assessment Mazu Mavuso 's receipts and expenses were as follows: Salary 720 000 Directors fees earned 110 000 Local dividend from South African companies 45 000 Pension fund contribution at 6.5% of his salary ? Retirement annuity fund contributions 7 000 Quality medical aid expenses 61 630 Donation to qualify for S18A Public Benefit Organisation 6 000 Calculate Mazu Mavuso s total normal tax liability for the 2023 year of assessment. Assume that Mazu Mavuso had taxable income of : R770 000 before any retirement fund lump sum withdrawal benefits. R843 900 after any retirement fund lump sum withdrawal benefits.
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