Q1. On 1 March 2023, Jabulani transfers a unit trust investment of R5 000 000 to the Jabulani Trust, a discretionary inter vivos trust via an interest-free loan. Assume that, through the course of the 2023/2024 year of assessment, the repurchase rate is 6.25% and the prime lending rate is 10.5%. Jabulani has not made any other donations in the current year of assessment or in previous years of assessment. How much donations tax will Jabulani pay in the 2023/2024 year of assessment?

a. R42 500.

b. R52 500.

c. R85 000.

d. R95 000.

e. None of the above

Q.2 Louis died on 1 August 2023. He bequeathed his farm (on which bona fide farming operations occur) to his spouse, Amanda, on condition that she pays a bequest price of R500 000 to their daughter Charmaine. The market value of the farm on date of Louis death was R10 000 000. What will the value of the section 4(q) deduction be in Louis estate in this regard?

a. R10 000 000.

b. R9 500 000.

c. R7 000 000.

d. R6 500 000.

e. None of the above

Q.3 Peter is married in community of property to Annie. He is the contracting party on a sinking fund policy. Peter wants to nominate the Peter Trust, a discretionary inter vivos trust as the beneficiary on the policy. Which one of the following statements is correct?

a. Annies consent is not needed in order to effect the beneficiary nomination.

b. Annies oral consent is needed to effect the beneficiary nomination.

c. Annies written consent is needed to effect the beneficiary nomination.

d. Annies oral or written consent is needed to effect the beneficiary nomination.

e. None of the above