Question
Rhaenyra is a 24-year-old female who is unmarried. She is a South Africa citizen who lives and works in Durban. During the 2022 year of
Rhaenyra is a 24-year-old female who is unmarried. She is a South Africa citizen who lives and works in Durban.
During the 2022 year of assessment she had earned the following income:
R | |
Salary | 230 000 |
Interest on fixed deposit | 29 800 |
South African dividends | 16 000 |
Rental income | 360 000 |
The following additional information is available with regards to the taxpayer for the 2022 year of assessment:
An asset with a market value of R7 500 was received from her employer as an award for a 20-year unbroken service he rendered to his employer. This asset was not initially bought with an intention to be disposed of to the employees. The cost price of this asset was R6 500.
The right of use of a motor vehicle from his employer and he does not receive a travel allowance. She is responsible for bearing the maintenance costs (R35 000) of the motor vehicle. The company is responsible for the fuel costs. She kept an accurate record of kilometres travelled for private purposes. She travelled 30 000 kilometres for private purposes of his total 50 000 kilometres travelled. The motor vehicle Rhaenyra has the right of use was purchased by her employer for R300 000 (retail market value).
She belongs to a medical aid fund to which she contributed R2 500 p/m for the full current year of assessment, her employer also contributed R2 500 p/m for the period during which she was employed.
Rhaenyra made retirement fund contributions of R3 500 per month for the current year of assessment.
A few years ago, she had inherited a beautiful house, situated in Cape Town, from her grandfather which she rents out and during the year she received a rental amount of R30 000 p/m for the entire year of assessment, the house needed urgent repairs to be done for plumbing which cost her R160 000.
Rhaenyra had incurred medical expenses of R26 000 for the year and this was not covered by her medical aid.
Rhaenyra made a provisional tax payment of R25 000 and the total tax for the year paid by her employer amounted to R56 250.
REQUIRED:
Calculate Rhaenyra's net tax liability for the 2022 year of assessment.
Step by Step Solution
3.39 Rating (146 Votes )
There are 3 Steps involved in it
Step: 1
To calculate Rhaenyras net tax liability for the 2022 year of assessment we need to consider her tot...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started