Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 3 Sizwe received a travel allowance from his employer amounting to R 1 2 0 0 0 0 for the current year of assessment.

QUESTION 3
Sizwe received a travel allowance from his employer amounting to R120000 for the current year of
assessment. He uses his car for business and private travels. He bought this car exactly 1 year ago for
R420000(including VAT). Sizwe travelled a total of 18000 kilometres during the current year of
assessment, of which 10000km were for private purposes. He also kept an accurate record of expenses
incurred in respect of the car for the current year of assessment. The costs are as follows:
REQUIRED:
3.1 Calculate the taxable portion of the travel allowance received by Sizwe for the 2024 year of assessment.
3.2 Ronald has been granted the right of use of a motor vehicle from his employer and he does not receive a
travel allowance. He is responsible for bearing the maintenance costs which amounted to R38000 for the
2024 year of assessment. The company is responsible for the fuel costs. Ronald kept an accurate record of
kilometres travelled for private purposes. He travelled 27000 kilometres for private purposes of his total of
45000 kilometres travelled for the year. The employer purchased the vehicle for R345000 including VAT.
REQUIRED:
Calculate the cash equivalent of the benefit for the current year of assessment.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Skills For Accounting And Auditing Research

Authors: Shelby Collins

2nd Edition

1618530747, 9781618530745

More Books

Students also viewed these Accounting questions

Question

Why is repatriation orientation and training needed?

Answered: 1 week ago