Question 1 (10 marks)

Unathi Brown (Unathi) is 53 years old (unmarried) and operates a bakery, as a sole proprietor, on a part-time basis from a cottage at her daughters backyard. Unathi has been reliant on the assistance of her daughter for her provisional tax calculations since inception of her business two years ago. Unathis daughter died in tragic car accident in July 2020 and she needs assistance with her first provisional tax calculation for her 2021 year of assessment. She wants to pay the least amount of provisional tax without incurring any penalties. Unathi has provided you with some information indicated in the table below:

year of assessment	date of assessment	taxable income
2018	2018-10-23	R549 461
2019	2020-08-22	R476 916
2020	2020-11-10	R639 028

Unathi has further mentioned that she sold her holiday home in January 2018 to free up some cash for her business. The sale of the holiday home resulted in a taxable capital gain of R154 419. Unathi does not contribute towards a medical scheme as she is a dependent on her son in laws medical scheme. Unathis full-time employer has withheld employees tax of R11 262 from 1 March 2020 until 31 August 2020.

REQUIRED:

Marks Calculate Unathi Browns first provisional tax payment for the 2021 year of assessment. Estimates of taxable income should be based on the information available to you. Show ALL calculations and provide brief reasons for the selection of the basic amount. Round off all amounts to the nearest rand. 10MARKS

NOTE

Assumptions for answering the questions: 1. All amounts exclude VAT unless stated otherwise. 2. All persons mentioned are residents of the Republic of South Africa unless stated otherwise. 3. SARS = South African Revenue Service 4. Show all workings, where applicable. Where an amount is subject to a limitation, clearly indicate the application of the limitation. Where any item is exempt from tax or not allowable as a deduction, this must be indicated, and a brief reason provided. All amounts must be rounded to the nearest Rand.