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please help me with this QUESTION 2 (10 MARKS; 18 MINUTES) Amilia withdrew R450 000 from her savings account, on 1 April 2017, to purchase
please help me with this
QUESTION 2 (10 MARKS; 18 MINUTES) Amilia withdrew R450 000 from her savings account, on 1 April 2017, to purchase an annuity. She was 42 years old. In terms of the purchase annuity contract, Amilia was to receive an annuity of R4 000 per month for life with effect from 1 June 2017. Use a life expectancy of 33.67. REQUIRED Calculate the taxable portion of the total annuities that Amilia received during the 2018 year of assessment. Clearly show the exempt portion in your answer. (10) Taxable income RO - R195 850 R195 851 - R305 850 R305 851 -R423 300 R423 301 - R555 600 R555 601 - R708 310 R708 311 -R1 500 000 R1 500 001 and above Rates of Natural persons and special trusts - 2019 Rates 18% of taxable income R35 253 + 26% of taxable income exceeding R195 850 R63 853 + 31% of taxable income exceeding R305 850 R100 263 + 36% of taxable income exceeding R423 300 R147 891 + 39% of taxable income exceeding R555 600 R207 448 + 41% of taxable income exceeding R708 310 R532 041 + 45% of taxable income exceeding R1 500 000 Tax Rebates (Rand) 2019 2018 Primary rebate (Persons under 65) 14 067 13 635 Secondary rebate (Persons 65 and under 75) 7713 7 479 Tertiary rebate (Persons 75 and above) 2 574 2493 Annual interest exemption Rand 2019 2018 Persons under 65 23 800 23 800 Persons 65 and above 34 500 34 500 Where the value of vehicle is RO -R85 000 R85 001 - R170 000 R170 001 - R255 000 R255 001 - R340 000 R340 001 - R425 000 R425 001 - R510 000 R510 001 - R595 000 Exceeding R595 000 Travel Scale of values (2019 year of assessment) Fixed Cost (R) Fuel Maintenance cost cost (c/km) 28 352 95.70 34.4 50 631 106.80 43.1 72 983 116.00 47.5 92 683 124.80 51.9 112 443 133.50 60.9 133 147 153.20 71.6 153 850 158.40 88.9 153 850 158.40 88.9 Subsistence allowance Rand 2019 2018 Meals and incidental costs 416 397 Incidental costs only 128 122 SStep by Step Solution
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