QUESTION $2$

$(17$ marks

Patrick retired on $20$ March $2024$ at the age of $65.$ He received the following information regarding the lump sum that his pension fund will pay to him on the date of his retirement:

a$.$ The one$-$third lump sum benefit from his pension fund is R$1845000($before tax$),$ and it will be payable to him in cash.

b$.$ During the thirty $(30)$ years that he was a member of the pension fund, R$45000$ of his own contributions were not allowed as deductions in terms of section $11$F of the income Tax Act No$.58$ of $1962.$

c$.$ Patrick's annual taxable income, excluding the lump sum amount for the current year of assessment, is R$75000$$$.$

d$.$ He did not previously receive any lump sum payments.

$2\mathrm{.}1.$ Explain to Patrick if the one$-$third pension fund lump sum is taxable and how the previously disallowed contributions are to be treated for purposes of determining his tax liability.

$(8$ marks$)$