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QUESTION 1 ( 5 0 marks ) Thalita is a 5 7 - year - old South African resident who works as an architect at
QUESTION marks
Thalita is a yearold South African resident who works as an architect at Big Drawings
Limited Big Drawings a South African company situated in Johannesburg. The
following information pertains to Thalitas year of assessment:
She earned a monthly salary of R per month from Big Drawings for the period
March to November Thalita resigned on November from Big
Drawings after years of service.
Thalita contributed R in total to Big Drawings pension fund a fund
established under the Pension Funds Act of for the period she was employed
by Big Drawings during the year of assessment. Big Drawings contributed the
same amount on behalf of Thalita to the pension fund. Assume that Thalitas
remuneration amounts to R for the year of assessment.
Thalita received a payment of R from Big Drawings on November in
exchange for undertaking not to work at another architectural firm in the
Johannesburg area within a period of five years.
Thalita borrowed R from Big Drawings on August until September
to buy a new motor vehicle at an interest rate of per annum. The interest
is payable to Big Drawings on the last day of each month and accrues daily. The loan
was repaid to Big Drawings on September at the end of the business day.
The official rate of interest for the relevant period was
Thalita used a set of six chairs owned by Big Drawings for private purposes at her
home from March to July Big Drawings purchased these chairs on
January at R per chair. The total market value of these chairs was
R on March
On November Big Drawings bought a new Rolex watch for Thalita as a
reward for her years of faithful service to the firm. The cost price of the watch was
R and the market value was R on November
HTAXJanJuneSAELKV
Thalita signed an employment contract with Sketches Pty Ltd on
November to start working for them on December in Johannesburg,
Gauteng. Unfortunately, the employment contract could not be fulfilled by Sketches
Pty Ltd and Big Drawings already employed someone else in Thalitas position from
December Therefore, Thalita claimed and received R per month from
the Unemployment Insurance Fund for the period December to February
Thalita received the following interest amounts during the year of assessment:
R on a fixed deposit at a bank in South Africa.
R from a Momentum Investment that qualifies as a taxfree investment in
terms of section T of the Income Tax Act.
Big Drawings withheld employees tax amounting to R from Thalitas salary
during the year of assessment, which they paid over to the South African
Revenue Service.
REQUIRED:
Calculate Thalitas normal tax payablerefundable for the year of
assessment.
Show all calculations and round all answers to the nearest rand.
Please provide a reason should an amount not be included.
marks
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