Phillip Wills (64 years old) is employed by an insurer to sell life insurance policies. He earns the following income for the 2020 year of assessment:- - Salary R870 000 - Dividends earned from a company based in South Africa R24 700 - Interest income from a South Africa investment (not tax free) R87 000 - Bonus received (non-pensionable) R42 000 - Foreign dividends earned (Phillip held 17% equity shares) R32 700 Philip received certain benefits from his employer during the year and these included: A travel allowance of R110 000. He had used the car for business and private travel. The car was bought a year ago for R350 000 (including VAT). Phillip had travelled a total of 16 800 kilometres during the current year of assessment of which 8 500 were for private purposes. He had also kept an accurate record of the expense that he had incurred in respect of the car for the current year of assessment. These costs are as follows:-

- Finance charges R47 000 - Maintenance costs R14 700 - Fuel coast R11 500 - Insurance premiums and license fees R17 700

Phillip has been conducting his computer programming business from his home since 1 July 2017. His office at home occupies 10% of the total floor area of his home. He incurred the following expenses during the 2019 year of assessment on his home:- - Mortgage bond repayments (R80 000 relating to interest portion) R240 000 - Cleaning and maintenance R60 000 - New built-in cupboards installed in his office at home R40 000 - Electricity, water and rates R66 000 - Telephone (80% of its use being for his business) R27 600 The Commissioner accepts this apportionment as being reasonable in terms of section 23(g) Legal expenses incurred in connection with:- - The recovery of his trade debtors R10 000 - Loan given to employee R15 000

Phillip incurred the following costs in relation to his retirement plan in the event of his retirement for the 2020 year of assessment: - Contribution made to a registered pension fund R 6 500pm

You should also note he is a member of a registered medical aid fund of which his wife and his child Tammy (17 years old) are dependents of the medical aid. He makes a contribution of R320 000 to the medical aid for the 2020 year of assessment in addition he had also incurred expenses which were not covered by his medical aid of R54 000. During the 2020 year of assessment Philips made the following donations:

- Donations to a cancer centre (S18A receipt) R14 700 - Donations to Durban University of Technology R17 400 - Donations to MANCOSA R25 400

You are required to calculate Philips tax liability for the 2020 year of assessment.