Question Completion Status: 12 points Save An Question 9 Simon received a travelling allowance of R66 000 (R5 500 a month) from his employer. He used two vehicles during the year of assessment. Vehicle 1 was purchased second-hand (actual retail market value) for R235 000 (including VAT) and was traded in for vehicle 2. Vehicle 2 (new) cost (actual retail market value) R325 000 (including VAT). During the year of assessment, he used vehicle 1 for 119 days and vehicle 2 for 246 days. He did not keep accurate records of costs incurred. He travelled 10 880 km in vehicle 1 during the 2020 year of assessment and 20 231 km in vehicle 2. His logbooks showed that he travelled 4085 business km in vehicle 1 and 8 027 business km in vehicle 2 during the 2020 year of assessment YOU ARE REQUIRED TO calculate the taxable amount of the travel allowance. (12) Employee-owned vehicles Value of the vehicle (including VAT) (R) Fixed cost (Rp.a.) Fuel cost (c/km) Maintenance cost (c/km) 10 - 85 000 28 352 95.7 34.4 50 631 85 001 - 170 000 106.8 43.1 72 983 170 001 - 255 000 116.0 47.5 192 683 255 001 - 340 000 124.8 51.9 112 443 340 001 - 425 000 133.5 60.9 425 001 - 510 000 133 147 153.2 71.6 1510 001 - 595 000 153 850 158.4 88.9 1 Vehicle 1 Vehicle 2 Total Kilometres Fixed cost: On R235 000 119 days 365 days Fixed cost: On R325 000 246 days 365 days Fixed cost Maintenance cost 382 200 485.46 Business km (V1) Business km (V2) Total cost 54 581 Travelling allowance Less Business cost Taxable portion 11 419 Question Completion Status: 12 points Save An Question 9 Simon received a travelling allowance of R66 000 (R5 500 a month) from his employer. He used two vehicles during the year of assessment. Vehicle 1 was purchased second-hand (actual retail market value) for R235 000 (including VAT) and was traded in for vehicle 2. Vehicle 2 (new) cost (actual retail market value) R325 000 (including VAT). During the year of assessment, he used vehicle 1 for 119 days and vehicle 2 for 246 days. He did not keep accurate records of costs incurred. He travelled 10 880 km in vehicle 1 during the 2020 year of assessment and 20 231 km in vehicle 2. His logbooks showed that he travelled 4085 business km in vehicle 1 and 8 027 business km in vehicle 2 during the 2020 year of assessment YOU ARE REQUIRED TO calculate the taxable amount of the travel allowance. (12) Employee-owned vehicles Value of the vehicle (including VAT) (R) Fixed cost (Rp.a.) Fuel cost (c/km) Maintenance cost (c/km) 10 - 85 000 28 352 95.7 34.4 50 631 85 001 - 170 000 106.8 43.1 72 983 170 001 - 255 000 116.0 47.5 192 683 255 001 - 340 000 124.8 51.9 112 443 340 001 - 425 000 133.5 60.9 425 001 - 510 000 133 147 153.2 71.6 1510 001 - 595 000 153 850 158.4 88.9 1 Vehicle 1 Vehicle 2 Total Kilometres Fixed cost: On R235 000 119 days 365 days Fixed cost: On R325 000 246 days 365 days Fixed cost Maintenance cost 382 200 485.46 Business km (V1) Business km (V2) Total cost 54 581 Travelling allowance Less Business cost Taxable portion 11 419