QUESTION 1 [20 MARKS) Sonia Davis, 55-year-old Namibian citizen had become an employee of "First for Women" Insurance on 14 February 2020 Her receipts and accruals for the 2021 year of assessment include: . A monthly salary of N$20 000 Annual bonus payable in December, N$20 000 Sales commission of N$25 000 for the year. The private use of a motor car with a cost of N$210 000 excluding Vat. The employer paid all the expenses, except fuel. The total fuel expenses for the year amounts to N$23 000 from which N97 500 was for private trips A cellular phone allowance of N$400 per month, Her business calls amounted to N54 000 for the year. Davis kept all the relevant records. The employer contributed 7% of Davis' annual basic salary towards a pension fund. Davis' contribution amounts to 8% of her basic annual salary Davis belongs to a medical aid fund for which her contributions amounts to N$18 500 per year. Her employer pays 60% of the annual fee. She resides in a house, which is leased by her employer. The total monthly rental is N$12 000 from which Davis pays N$3 000. An approved housing scheme with the Receiver of Revenue is in place. She also receives free meals from her employer, which she consumes at home. Sonia's divorce was finalized on 015 March 2020 and in terms of the court order, her ex-husband pays her N$3,000 alimony per month. In addition, the settlement also awarded her their holiday home at the coast. The holiday cottage is valued at $950.000, She bought a computer from her employer for N$2 000. The cost price when purchased in 2015, was N56 000 and the current market value is N$3000. Interest from a Bank Windhoek on a savings account. N$15 000. 2 A monthly annuity of N51 500 as from 1** July 2015 received from Sanlam Namibia. She purchased the annuity for a cash consideration of N$250 000 Her current life expectancy is 22.65 years Required: Calculate the taxable income of Sonia Davis for the 2021 year of assessment (20) QUESTION 1 [20 MARKS) Sonia Davis, 55-year-old Namibian citizen had become an employee of "First for Women" Insurance on 14 February 2020 Her receipts and accruals for the 2021 year of assessment include: . A monthly salary of N$20 000 Annual bonus payable in December, N$20 000 Sales commission of N$25 000 for the year. The private use of a motor car with a cost of N$210 000 excluding Vat. The employer paid all the expenses, except fuel. The total fuel expenses for the year amounts to N$23 000 from which N97 500 was for private trips A cellular phone allowance of N$400 per month, Her business calls amounted to N54 000 for the year. Davis kept all the relevant records. The employer contributed 7% of Davis' annual basic salary towards a pension fund. Davis' contribution amounts to 8% of her basic annual salary Davis belongs to a medical aid fund for which her contributions amounts to N$18 500 per year. Her employer pays 60% of the annual fee. She resides in a house, which is leased by her employer. The total monthly rental is N$12 000 from which Davis pays N$3 000. An approved housing scheme with the Receiver of Revenue is in place. She also receives free meals from her employer, which she consumes at home. Sonia's divorce was finalized on 015 March 2020 and in terms of the court order, her ex-husband pays her N$3,000 alimony per month. In addition, the settlement also awarded her their holiday home at the coast. The holiday cottage is valued at $950.000, She bought a computer from her employer for N$2 000. The cost price when purchased in 2015, was N56 000 and the current market value is N$3000. Interest from a Bank Windhoek on a savings account. N$15 000. 2 A monthly annuity of N51 500 as from 1** July 2015 received from Sanlam Namibia. She purchased the annuity for a cash consideration of N$250 000 Her current life expectancy is 22.65 years Required: Calculate the taxable income of Sonia Davis for the 2021 year of assessment (20)
