question 3

Question 3 15 Marks - 27 minutes The following information relates to the income and expenditure of Mr. Van Wyk, a Finance Director at a local manufacturing company for the 2018 year of assessment. Income: N$ Salary Housing benefit Education policy pay-out (1) Interest from Nampost Profit on sale of shares held as investment Gift from mother Uniform allowance (2) 220,000 18,000 90,000 5,000 10,000 10,000 4,000 Expenses: Pension contribution Education policy premiums Donation to university (3) Medical aid premiums Insurance premiums (4) 20,000 1,500 2,000 4,000 1,000 Additional information: 1. Mr. Van Wyk expended N$65,000 of the education policy pay-out as follows: N$40,000 for tuition of his 19 year old son studying at UNAM and N$25,000 for tuition of his 24 year old married daughter studying at NUST. 2. The uniform allowance was granted to him to buy appropriate formal wear and is not exclusively for work. 3. The donation was made to an approved educational institution from which the appropriate certificate was received. 4. The insurance premium paid relates to his private vehicle that he also uses when travelling to work. Required: calculate Mr. Van Wyk's taxable income for the 2018 year of assessment