NB. Tound on your calculations to the nearest Ranta. Question 2 (20 Marks) Sheldon Cooper and Leonard Howard are partners in a partnership and they share in profits and losses as follows: Sheldon Cooper: 70% Leonard Howard: 30% The Bookkeeper has prepared and provided you with the following Statement of Profit or Loss and other Comprehensive income in respect of the partnerships 2021 year of assessment: Income R. The Bookkeeper has prepared and provided you with the following Statement of Profit or Loss and other Comprehensive income in respect of the partnerships 2021 year of assessment: Income R Gross income 500 000 Dividends received (note 2) 4.500 Interest from a South African source 6 360 Settlement 19 390 530 250 Less: Expenditure (375 450) Annuities (note 1) 12 000 Retirement annuity fund contributions: 3000 Sheldon 4 500 Leonard Shares purchased (note 2) 75 000 Sundry deductible expenses 17 900 Delivery van purchased (note 3) 39 600 Donations (note 4) 18 750 Delivery van running expenses 5 500 Rental paid 21 600 Staff salaries and wages 90 000 Drawings: Sheldon (note 5) 6 600 Salaries paid: 36 000 Sheldon 45 000 Leonard Net profit 154 800 Sheldon (70%) I 108 360 Leonard (30%) 46 440 Notes: 1. The following annuities were paid during the year to dependants of two deceased former employees: R. Notes: 1. The following annuities were paid during the year to dependants of two deceased former employees: R Rajesh and his two children 8 400 Stewart 3600 12 000 2. During the 2021 year of assessment, the partners decide to invest their surplus cash funds and they purchased 25 000 shares in Pablo (Pty) Ltd, a company registered in the Republic, at R3 a share. The company paid a dividend of R4 500 to the partnership on 31 December 2020. 3. No depreciation has been provided for in the Statement of Profit or Loss and other Comprehensive Income in respect the delivery van which was purchased on 1 May 2020 for R39 600 (excluding VAT). The approved write-off period for delivery vehicles is four years. 4. During the 2021 year of assessment the partnership made the following donations: R To a non-public benefit organisation 3750 To a public benefit organisation 15 000 Official receipts were obtained. Sheldon also donated R20 000 in his own name to a qualifying public benefit organisation and obtained the required receipt. 5. Other partnership information (not taken into account in arriving at the net profit of R154 800): Sheldon Leonard Interest on capital 20 000 0 108 000 90 000 Drawings (including the R6 600 deducted in the Statement of Profit or Loss and other Comprehensive income) 6. Both partners are under the age of 65 years. All amounts paid to or on behalf the partners are in accordance with the partnership agreement. Required: Calculate taxable income of the partnership for the 2021 year of assessment. 4G+ 17:16 0 LTE2 46*17% TAX RATES COMPANIES Income Tax For years of assessment ending during the following periods: 1 April 1994 31 March 1999 1 April 1999 31 March 2005 1 April 2005 31 March 2008 1 April 2008 31 March 2020 35% 30% 29% 28% SA Income - Foreign Company/Branch Tax For years of assessment ending during the following periods: 1 April 1996 31 March 1999 1 April 1999 31 March 2005 1 April 2005 31 March 2008 1 April 2008 31 March 2012 1 April 2012 31 March 2020 40% 35% 34% 33% 28% Secondary Tax on Companies Dividend declared between 22 June 1994 and 13 March 1996 Dividend declared between 14 March 1996 and 30 September 2007 Dividend declared between 1 October 2007 and 31 March 2012 25% 12,5% 10% Dividends Tax Dividend paid or becomes due and payable from 1 April 2012 Dividend paid or becomes due and payable from 22 February 2017 15% 20% EFFECTIVE TAX RATE Tax year 2014 to 2016 2017 Prior to 22 Feb 2017 2017 From 22 Feb 2017 2018 to 2020 R R R R Taxable income Less: Normal tax 100,00 28,00 72,00 72,00 100,00 28,00 72,00 72,00 100,00 28,00 72,00 72,00 100,00 28,00 72,00 72,00 Available for distribution Less: Dividend Retained 0 0 0 0 Total tax Normal tax Dividends Tax 38,80 28,00 10,80 38,80% 38,80 28,00 10,80 38,80% 42,40 28,00 14,40 42,40% 42,40 28,00 14,40 42,40% Effective rate Assumes all profits are declared as a dividend. 4 TAX RATES INDIVIDUALS - 2019 Taxable income Rates of tax R 0 - R 195 850 18% of each R1 R 195 851 - R 305 850 R 35 253 +26% of the amount over R195 850 R 305 851 - R 423 300 R 63 853 +31% of the amount over R 305 850 R 423 301 - R 555 600 R100 263 +36% of the amount over R 423 300 R 555 601 - R 708 310 R147 891 +39% of the amount over R 555 600 R 708 311 - R1 500 000 R207 448 + 41% of the amount over R 708 310 R1 500 001 + R532 041 + 45% of the amount over R1 500 000 TAX RATES INDIV5 of 58 2020 Taxable income Rates of tax R 0-R 195 850 18% of each R1 R 195 851 - R 305 850 R 35 253 +26% of the amount over R 195 850 R 305 851-R 423 2nn R 63853_ 310% of the amount over R 205 850 III