Salary 360 000 Commission received 1 66 800 Accumulated leave-pay 2 120 000 Royalties on book written 3 24 649 Entertainment allowance 8 700 Personal contributions to provident fund 7 32 400 Retirement annuity fund contributions 8 ? Notes and additional information: 1 Commission received Jennifer received commission from her employer over the year for certain sales that she made. Jennifer received commission income as follows: R 30 April 2021 22 400 31 July 2021 15 600 30 November 2021 3 600 28 February 2022 25 200 Total 66 800 SARS had issued a tax directive that her commission income would be taxed at a flat rate of 25% for employees tax purposes. 2 Accumulated leave pay Jennifers employer allows her to cash in accumulated leave of up to 50 days a calendar year. Jennifer converted some of her accumulated leave into cash which was paid to her along with her December 2021 salary to cover her Christmas expenses and fly her family up to be with her for Christmas. 3 Royalties Jennifer wrote a book on graphic designs during July 2019. The book was published and she received her annual royalties from her local publisher on 15 December 2021. 4 Travel allowance Jennifer owns a vehicle that she purchased on 1 November 2017 for R400 000 (15% VAT excluded). The purchase price included a maintenance plan for 5 years. The vehicle was financed over 5 years. The market value of the vehicle amounted to R260 000 on 1 September 2021. Jennifer regularly consults with clients regarding specific design requirements. She prefers to visit the clients at their premises. She previously did not have a travel allowance structured into her salary package. After meetings with the companys HR department a travel allowance of R6 500 per month has been structured into her salary package as from 1 September 2021 (not included in the salary figure provided above). Jennifer kept accurate records of her costs and kilometres travelled and provided you (and her employer) with the following schedule: Actual costs Actual kilometres travelled 01/03/2021 01/09/2021 01/03/2021 01/09/2021 to 31/08/2021 to 28/02/2022 to 31/08/2021 to 28/02/2022 Fuel R16 560 R13 340 Private 10 552km 8 581km Maintenance R1 007 R266 Between home and work 11 960km 11 960km Annual license R472 Business 5 211km 2 851km Traffic fine R1 725* * Jennifer was caught for speeding on her way to a client as she was late for her appointment. 5 Printer Jennifer purchased a printer from her employer for R1 150 (including VAT) on 1 May 2021. She only used this printer for administrative purposes for her book (see note 3 above). Her employer purchased the printer for R8 000 (including VAT) on 1 July 2019 to be used in their office. The market value of the printer on 1 May 2021 was R5 600 (including VAT). Jennifer purchased a toner (cartridge) for the printer during the current year of assessment for R1 500 (including VAT). 6 Data projector Jennifer had the right to use her employers data projector from 1 November 2021 to 1 January 2022. She uses the data projector at home to watch DVDs through her laptop on a bigger screen. Her employer purchased the projector as new for R9 000 (including VAT) on 14 June 2019 (market value on 1 March 2021 R5 100, on 1 November 2021 - R4 960 and on 1 January 2022 R4 400) with the original intention of using if for presentations. Jennifer also used the projector during the year from time to time to make presentations to clients. During the time that she did not have exclusive use of the projector, other designers also made use of it for presentations. 7 Provident fund contributions Over and above Jennifers personal contributions to the provident fund of R32 400, her employer also contributed 55% of the total contributions made to the provident fund during the year. 8 Retirement annuity fund contributions Jennifer made retirement annuity fund contributions (via debit order from her private local bank account) of R4 000 per month during her entire 2022 year of assessment. She has not informed her employer of these contributions. On 31 December 2021 she made a once-of contribution of R15 000 into the fund after the sale of her antique furniture. 9 Vacant land As Rock did not earn any income during the 2022 year of assessment Jennifer was forced to sell a piece of land situated on the Vaal river (South Africa) that she had inherited from her late uncle when he passed away in 30 November 2008. Transfer duty on transfer of the land to Jennifer was paid by his late uncles estate in accordance to his will. The land was not excluded from any communal estate. Ownership passed to her from 1 March 2009. The land had a market value of R700 000 on 30 November 2008 and R800 000 on 1 March 2009. The land was not developed and Jennifer had been hoping that area around the land would be developed with roads and services but this had never happened. She had to pay rates and taxes each year since she inherited it on 1 March 2009 (in total she had paid R121 300 in rates and taxes). She sold the land at a bit higher than its market value of R1 000 000 for R1 050 000 at an auction on 1 December 2021. She had to pay 5% auctioneers fees of the sales value of the land. 10 Rental agreement During the previous year of assessment Jennifer and Rock converted the double garage on their property into a garden flat for Jennifers best friend (Goldie) to rent. The rent is lower than market related rental of R3 000 per month as is payable in advance. Goldie started renting on 1 March 2021 and paid the rent for March as well as a refundable deposit of R6 000 on the same date. Goldie never skipped a payment and paid her rent for each month after that in advance on the 26th of the previous month. Jennifers bond on her house amounts to capital repayments of R30 000 for the year and interest payments of R90 000. The garage is 18m2 while the total area of all buildings on the property is 230m2 . 11 Municipal account Jennifer has summarised their municipal account for the 2022 year of assessment and she has proof of these accounts. Jennifer paid the municipal account each month. R Rates and taxes 15 100 Water and electricity* 17 240 * VAT on services 4 851 Total paid for the year 37 191 12 Monthly debit order Jennifer has a monthly debit order to Heavenly Helpers of R350 per month and to Children in Need of R650 per month. Jennifer receives a s18A receipt annually from Children in Need, but not from Heavenly Helpers. 13 Entertainment expenses Jennifer is required from time to time to entertain prospective clients as part of her contract. She receives an allowance to cover this cost. During the year she spent R9 000 on entertaining prospective customers (she has proof of all these expenses). 14 Other relevant information Jennifer elects to always pay the minimum tax possible, while still adhering to South African Tax legislation. You may ignore any income tax interest or income tax penalties, if applicable. Jennifer timeously paid provisional tax totaling R11 250 (assume correctly determined) in respect of her 2022 year of assessment. REQUIRED MARKS (a) In terms of the travel allowance received by Jennifer, determine the amount to be included in Jennifers taxable income for the year ended 28 February 2022.