Pete Loren is a 35 year old provisional taxpayer. Pete really struggles with this tax thing and he fell behind with his tax returns. He is starting to catch up and he asked you to help him avoid further penalties.

Petes taxable income and tax assessments details are as follows:

2020 taxable income was R430 000 (notice of assessment received 15 July 2022).

2021 taxable income was R480 000 (notice of assessment received 11 December 2022).

2022 taxable income was R570 000 (notice ofassessment received 20 May 2023).

2023 taxable income was R640 000 (notice of assessment was received 27 September 2023).

Petes employees tax for the year remained constant at R6 000 per month.

YOU ARE REQUIRED TO:

A) Calculate Petes first and second provisional tax payments for his 2023 year of assessment to avoid any penalties (what he should have paid).

B) Assume that Pete made a second provisional tax payment on 14 March 2023, based on an estimate of R500 000. Calculate the consequences this payment.