Rauna Kautjiko, is a resident and renowned Tax consultant in Namibia. Her services

are well$-$sought. During the $2023$ year of assessment, Rauna has earned the following

incomes:

Item Amount $($N$$)$

Director$$s Fee $120000$

Interest from Nedbank $($Namibia$)22000$

Interest from ABSA $($SA$)246000$

Dividends $90000$

Legacy received $470000$

Gift from a friend $30000$

Share premium receipt $56000$

Annuity from a USA Insurance company $420000$

Lump sum from employer $500000$

Sale of shares held as:

Investment $360000$

Bet win on results of a tennis match $15000$

Restraint of trade received $50000$

Additional information:

a$)$ Rauna$$s salary for the current year of assessment was N$$765800.$

b$)$ In addition to her salary as earned above, she also worked on two tasks outside of

her normal working hours. The first task was to conduct a tax assessment on one of

the biggest mining companies in Namibia. As she was contracted for this task for her

skills and knowledge, she assisted the tax accountant in applying her knowledge to

conduct the tax assessment. The $$know$-$how$$ payments for this amounted to N$$750$

$000.$ Task no$\mathrm{.}2$ involved a special tax audit of one of the Multinationals in Zambia, of

which she was contracted to also assist with the application of her knowledge in the

task. The total $$know$-$how$$ payments for task no$\mathrm{.}2$ amounted to N$$560000.$

c$)$ The Commissioner General of NamRA that contracted Rauna for the special tax

audit of the Multinational in question was so impressed by Rauna$$s skills and expertise

they offered her a short$-$term employment contract in agreement with her current

employer. That her current employer would continue to pay her salary in Namibia butshe would work for the company in Zambia. Her income earned during this time period

is included in her total salary under point $($a$)$ and amounted to N$$29100.$

d$)$ Rauna earned additional interest from the following three sources:

i$.$ Interest from her investment account at Zibuko Investments in Botswana: N$$12500$

ii$.$ Interest earned from an investment account held in Bank of America: N$$4500$

iii. Interest from her Unit Trust account at Capricorn Asset Management $($Namibia$)$:

N$$8700$

e$)$ Rauna started a conservation project on her mother$$s farm through which she

conserves the decreasing number of ducks. During the current year of assessment a

total of N$$2350000$ of receipts for purposes of the conservation was received.

f$)$ Her contributions to her company$$s pension fund made during the year amounted to

$8\%$ of her salary.

g$)$ She also received N$$160000$ from the education policy that she had taken out for

her children. She had contributed N$$90000$ towards the policy. She spent N$$130000$

on tuition fees for her $23-$year$-$old son who is studying Engineering at NUST, and the

rest was paid towards the graduation fee of her $25-$year$-$old daughter who had recently

tied the knot.

h$)$ As part of her salary package, Rauna receives the right to private use of a company

vehicle. According to the employment agreement, the employer grants the right to use

a company vehicle and Rauna is responsible to pay the fuel costs of the vehicle. The

cost price including VAT of the vehicle was N$$250000.$

i$)$ In addition to the benefit received above, Rauna also received on $1$ March $2022$ a

housing loan of N$$350000$ from her employer in terms of an approved housing

scheme. According to the agreement, the interest Rauna would pay is $7\%$ on the loan

granted. Assume an official interest rate of $12\%.$ Up until the time Rauna can move

into her new home, the employer agreed to lease out a property to Rauna at a monthly

rental payment of N$$4500.$ The employer pays a monthly rental of N$$10000$ per

month. Rauna moved into her newly purchased house on $01$ June $2022.$

Required:

a$)$ Calculate the tax liability of Rauna Kautjiko for the year of

assessment ending at $28$ February $2023.$ Show all workings and

support your answers with brief reasons where possible and also

indicate with brief reasons where there are no tax implications or

adjustments.

$(35$Marks$)$

b$)$ State five canons of taxation. $(5$ marks$)$