QUESTION 2 (37 marks) Megan is a 36-year-old South African resident who enjoys certain fringe benefits as part of her salary package. The details of these fringe benefits are as follow: Accommodation: Megans employer pays R114 000 per annum (this is considered to be an arms length transaction) to rent a house from a non-connected person. Megan paid R27 000 in total to live in this house which was rented from 1 June 2022. The house has three bedrooms, a kitchen, a bathroom and a lounge and is furnished. Megan pays for her own electricity and water. Megan earned R320 000 in the 2022 year of assessment, which is considered to be her remuneration proxy. Use of a company car: Megan received a travel allowance of R6 800 per month from her employer for the use of a vehicle for the 12 months of the 2023 year of assessment. The vehicle was purchased second-hand for R320 000 (including VAT). Megan used the vehicle for a total of 235 days during the 2023 year of assessment. She travelled a total of 24 700 km, and her logbook showed that 13 270 km were for private purposes. She did not keep accurate records of the costs she incurred. REQUIRED: 2.1) With regards to the Accommodation, discuss the value of the fringe benefit which Megan will have to include in her taxable Income for the 2023 year of assessment. Support your answer with references to the Seventh Schedule of the Income Tax Act and calculations. Round your answer to the nearest rand. (22 marks) 2.2) With regards to the Use of a company car, calculate the taxable amount of Megans travel allowance for the 2023 year of assessment. (15 marks) Competency Framework Reference: E1.3 Application of tax legislation to calculate tax obligation a) Analyse the taxpayers tax profile. c) Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies. C8.1 Tax implications for selected aspects of decision-making e) Advise on the tax consequences of different compensation structures and remuneration packages from the perspective of both the employer and the employee. E1.2 Interpretation of tax legislation b) Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation