Sharon Moyo is an Accountant in Harare. She earned the following amounts during the year of assessment ended 31 December 2022.
She earned a basic salary of $400 000 per month from January to July 2023 and got a 50% pay rise from 01 August 2022 to 31 December 2022. She received a bonus of $700 000 in December 2022. In addition, her pension fund contributions were calculated at 7.5% of her basic salary.
During the year, Sharon had use of a company vehicle with an engine capacity of 3200CC and it was determined that 40% was for business use.
She is currently living in one of her employer’s houses. The open market rentals in the area are $40 000 per month and the employer charges her $15 000 per month. In addition she won a holiday for the worker of the year award and she utilized it at a cost of $200 000 to the employer in June 2022.
The company lent Sharon $300 000 at an interest rate of of 5% per annum. She repaid the loan on 31 August 2022 and borrowed a further $400 000 from that date at no interest, which loan she repaid on 31 December 2022. In addition, the company lent her $200 000 for her advanced studies at the Midlands State University. The LIBOR Rate for the year ended 31 December 2022 averaged 1.5%.
In June 2022, Sharon was sent to a technical update workshop in Bulawayo. The workshop was to run from Monday to Friday and the employer was to pay for six nights in a hotel at $5000 per night, but she extended her stay by a further three nights and the employer settled the bill.
An amount of $600 000 was advanced to her by her employer to pay for a function which she arranged for the employers clients during August 2022. The actual cost amounted to $500 000 and the balance was not paid back to the employer. She also receives a monthly allowance of $20 000 to entertain customers. She spent $100 000 on entertaining the company's clients.
During the year, Sharon had use of Mifi gadget purchased by the employer which she was allowed to use for limited private use. During the year, the employer paid Mifi data for her which cost $50 000 for her private use.
During the year, she paid for her annual membership fees amounting to $100 000 to the Chartered Institute of Management Accountants (CIMA)
Sharon contributed $60 000 to her medical aid society and paid $30 000 for medical surgery of which the medical aid society did not pay anything. In addition, her contributions to an unapproved benefit fund amounted to $30 000.
Sharon received interest from POSB amounting to $100 000.
PAYE deducted during the year amounted to $220 000.
Required
Calculate Sharon’s taxable income for the year ended 31 December 2022 and her tax on taxable income.