QUESTION 7 Rory (aged 52) is a member of a provident fund. The rules of the provident fund makes provision for early retirement from the fund from age 50. Rory elects for early retirement in the 2023/2024 year of assessment and receives a lump sum payment from the fund. Which one of the following statements is correct? 

a. The lump sum will be taxed at Rory's marginal rate of tax. 

b. The lump sum will be taxed at Rory's average rate of tax. 

c. The lump sum will be taxed as a retirement fund lump sum benefit. 

d. The lump sum will be taxed as a retirement fund lump sum withdrawal benefit. 

e. None of the above

 

QUESTION 8 Thebogo dies on 8 May 2023. His spouse had died on 5 December 2005. At the date of his spouse's death, the section 4A abatement was R1 500 000. When his spouse died, she bequeathed her full estate to Thebogo, but nominated her son as the beneficiary on a life insurance policy on her life with a death value of R200 000. What is the section 4A abatement that Thebogo's estate will be entitled to?

a. R3 500 000. 

b. R4 800 000. 

c. R5 000 000. 

d. R6 800 000. 

e. None of the above

 

QUESTION 9 Ahmed is a South African resident. He started working for an employer based in Guernsey from 1 March 2023. He performed his duties from both Guernsey and South Africa. In the 2023/204 year of assessment his performed his duties as follows between Guernsey and South Africa: (i) Guernsey: March 2023, May 2023, July 2023, September 2023, November 2023 and January 2024. (ii) South Africa: April 2023, June 2023, August 2023, October 2023, December 2023 and February 2024. He earned the equivalent of R3 000 000 from his employer in the 2023/2024 year of assessment. There is no double tax agreement in place between South Africa and Guernsey. What is the amount to be included in his South African income (i.e., after any relevant exclusion is applied) for income tax purposes? 

a. R3 000 000 

b. R2 000 000 

c. R1 750 000 

d. R0 

e. None of the above