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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 1(50 marks)
Thalita is a 57-year-old 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 2024 year of assessment:
1. She earned a monthly salary of R65000 per month from Big Drawings for the period
1 March 2023 to 30 November 2023. Thalita resigned on 30 November 2023 from Big
Drawings after 25 years of service.
2. Thalita contributed R110000 in total to Big Drawings pension fund (a fund
established under the Pension Funds Act of 1956) for the period she was employed
by Big Drawings during the 2024 year of assessment. Big Drawings contributed the
same amount on behalf of Thalita to the pension fund. Assume that Thalitas
remuneration amounts to R732000 for the 2024 year of assessment.
3. Thalita received a payment of R360000 from Big Drawings on 30 November 2023 in
exchange for undertaking not to work at another architectural firm in the
Johannesburg area within a period of five years.
4. Thalita borrowed R320000 from Big Drawings on 1 August 2023 until 30 September
2023 to buy a new motor vehicle at an interest rate of 4.5% 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 30 September 2023 at the end of the business day.
The official rate of interest for the relevant period was 5.75%.
5. Thalita used a set of six chairs owned by Big Drawings for private purposes at her
home from 1 March 2023 to 31 July 2023. Big Drawings purchased these chairs on
1 January 2023 at R6000 per chair. The total market value of these chairs was
R30000 on 1 March 2023.
6. On 30 November 2023, 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
R75000 and the market value was R80000 on 30 November 2023.
3 HTAX230-1-Jan-June2024-SA1-ELK-V2-23012024
7. Thalita signed an employment contract with Sketches (Pty) Ltd on
30 November 2023 to start working for them on 1 December 2023 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
1 December 2023. Therefore, Thalita claimed and received R16520 per month from
the Unemployment Insurance Fund for the period 1 December 2023 to 29 February
2024.
8. Thalita received the following interest amounts during the 2024 year of assessment:
R24000 on a fixed deposit at a bank in South Africa.
R11000 from a Momentum Investment that qualifies as a tax-free investment in
terms of section 12T(1) of the Income Tax Act.
9. Big Drawings withheld employees tax amounting to R283645 from Thalitas salary
during the 2024 year of assessment, which they paid over to the South African
Revenue Service.
REQUIRED:
1.1) Calculate Thalitas normal tax payable/(refundable) for the 2024 year of
assessment.
Show all calculations and round all answers to the nearest rand.
Please provide a reason should an amount not be included.
(46 marks)

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