QUESTION 1

Tom Cruis, is a Namibian resident of the republic of Namibia, employed chief financial officer of the ERINDI group of companies, the company specialises in managing wildlife reserves & has a few investments in lodges around the country, he earns income in the marginal tax bracket he also owns share in a few companies mainly in insurance and also runs a family business.

The following pertains to Tom during the year ended 28 February 2020: (All amounts in NAD, unless stated otherwise)

Salary from employment 3,500,000

Bonus 1,200,000

Housing allowance 450,000

Use of company vehicles ( Refer to note 1) ???

Pension fund contributions ( Refer to note 2) ???

Education policy ( Refer to note 3) ???

RAF contributions (Refer to note 4) ???

Salary from family business 45,000

Dividends received from Insurance businesses 87,900

Deductible expenses in relation to the family business 102,000

Home & Upkeep expenses incurred by Tom 130,700

Note: 1 Tom has been provided the use of the companys (ERINDI) vehicle and the annual cash equivalent value of the benefit is NAD 387,000

Note:2 Tom, is a member of the JYNX pension fund, total contributions for the year amounted to NAD68,000, both Tom & ERINDI contribute on a 50/50 basis to the fund.

Note 3 Tom, contributed the educational policies of his 3 kids to a total amount of NAD 67,950 for the year.

Note 4: Tom, is a member of the ELITE retirement annuity fund, he contributed, a total amount of NAD 124,300 for the year towards, ERINDI does not contribute to the fund..

Tom, whilst playing golf on one Sunday morning at the Country club resort, spoke to his friend , Mr, Van Rooyen, who mentioned about his provisional tax payments that were due, as a result of his pride, he acted as if he knew what provisional tax was all about.

Required:

1. Calculate, the monthly employees tax that ERINDI should deduct for Tom Crus ?
2. Calculate the normal tax liability for Tom for the year of assessment (with supporting explanations for items included/deducted from taxable income)?
3. Assuming, that Tom, paid his 1^st provisional tax correctly, calculate his second provisional tax if his taxable income for the year is NAD5,000,000 ?