Question One

Melissa received her salary of P375,000 for the year (July 2021 June 2020). In addition, she was paid P13,000 for medical aid and P18,750 in respect of her pension fund. She received reimbursement of P24,000 for travelling cost.

1. Calculate Melissas taxable income for the year 2020 2021.

Note: You should indicate any amounts of employment income which are non-taxable by including them in your calculation as zero ( 5)

2. State the deadline for the submission of her tax return (2)
3. Melissas company provided her a staff quatres throughout the year 2021-2022. The annual rental was P48,000 and the rateable value of the house was P542,000.

What is the amount of having benefit assessable on Melissa for the year ended 2021-2022.

Question Two

Kenneilwe works for ABC Advisory (Pty) Ltd. He produced the following details of her employment package for the year ended 30 June 2022. P

Salary 336,250

Year-end bonus 37,500

Company car Cost 230,000

Medical aid company contribution 12,000

Pension company contribution 12,500

Low interest loan 2% 150,000

The market interest rate for the year was 10%.

In addition, her employer company paid Kenneilwes medical costs of P9,500 which she could not recover from the medical aid scheme.

Kenneilwes own contribution to employers pension fund in the year was P12,500.

In addition, she paid P6,000 to a retirement annuity fund. Further information relating to Kenneilwes non-employment income is as follows:

1. Kenneilwe owns a house which she rents out at P6,000 per month. She incurred the followings costs in relation to the house in the year ended 30 June 2022: P

Construction of a garage 75,000

Insurance 7,500

Rates 1,000

Mortgage interest 9.250

2. Kenneilwes investment income for the year ended 30 June 2022 was:

P

Interest received from a bank 18,295

Dividends received 6,915

Withholding tax was correctly deducted from both items.

Required:

(a) Calculate the income tax (PAYE) which ABC Advisory (Pty) Ltd should have deducted from Kenneilwes employment package.

Note: You should indicate any amounts of employment income which are non-taxable by including them in your calculation as zero (0). (10)

(b) Calculate Kenneilwes taxable income for the year ended 30 June 2022. Note: You should indicate any items of income which are non-taxable or any expense items which are not deductible by including them in your computation as zero (0). (10)