Mrs Beckam (65years) retired from her work as a Cost Accountant in ABC (Pty) Ltd, a manufacturing company in Windhoek on 31 January 2020. She registered a detergent making company as part of her retirement plans. She employed a full-time manager to run the business. Mrs Beckam gives you the following information to enable you to prepare her income tax return for the 2021 tax year:

Retirement gratuity received from ABC (Pty) Ltd 385,000 Lump sum from pension fund (See note 1) 480,000 Annuity from pension fund N$4 000 per month 48,000 Pension fund contributions 30,000 Dividends from special tax-free shares 1,700 Medical aid contributions 1,200 Contributions towards education policy for her son 14,000 Dividends received from Namibian companies 1,800 Company registration costs 2,800 Cost of raw materials 23,600 Cost of packaging 12,000 Company logo and branding costs 4,000 Award received from the Environmental Investment Fund (EIF) for promoting hygiene in the community 2,200 Her monthly home groceries for the year 36,000 New ingredients mixer purchased on 1 July 2020 30,000 Salaries 12,000 Toyota Hilux (single cab) purchased 1 September 2020 exclusively for company deliveries 78,000

Additional information 1. Of this amount, N$80 000 was immediately transferred into a provident fund.

You are required to: Calculate the taxable income of Mrs Beckam in respect of the current tax year (2021). NB: To earn full marks support your answers with calculations and reasons.

APPENDIX INDIVIDUAL INCOME TAX TAXABLE INCOME (N$) ANNUAL RATES OF TAX (N$) 0 50 000 Not taxable 50 001 100 000 18% for each N$ above 50 000 100 000 300 000 9 000 + 25% for each N$ above 100 000 300 001 500 000 59 000 + 28% for each N$ above 300 000 500 001 800 000 115 000 + 30% for each N$ above 500 000 800 001 1 500 000 205 000 + 32% for each N$ above 800 000 Above 1 500 000 429 000 + 37% for each N$ above 1 500 000