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QUESTION 4 ( 3 5 marks ) Thabo is a South African resident who retired at the age of 6 0 on 3 1 August
QUESTION marksThabo is a South African resident who retired at the age of on August As a result of his retirement, he received the amounts below during the year of assessment:Lump sum from pension fundCash regarding accumulated leaveMonthly annuity from pension fund starting from December Retirement lump sum from employerRAdditional information: Thabo was a member of the pension fund for years. All of his contributions were allowed as a deduction in the past. From the age of years, Thabo has contributed an annual amount of R to a retirement annuity fund. He will retire from this fund when he turns years old.Thabo contributed an additional R to the retirement annuity fund in December because of the large lump sums he received. Disallowed deductions up to February totalled R Thabo earned a monthly salary of R when he retired. On January his salary increased by Thabo's only source of income for the year of assessment was his employment. The only deductions from his salary were his pension contributions of and monthly medical aid contributions of R per month. Thabo incurred other qualifying medical expenses of R for the year of assessment. He was the only member of the medical aid fund. Thabo incurred no additional medical expenditure in the year of assessment and continued to pay medical aid contributions after his retirement.Required Calculate Thabo's tax liability for the year of assessment ending February as per the appropriate tax framework applicable to natural persons. marks
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