Sipho  is employed at Big Worx (Pty) Ltd as a Business Development Manager. As part of his duties, he is required to travel far distances with his vehicle. His employer gave him the option of a new company vehicle, a travel allowance or a salary increase to purchase a new vehicle. Sipho has asked for your advice as to which option will have to lowest tax consequences. Below are the three options in detail: 

Option 1: Company vehicle to the value of R450 000 (VAT incl). This vehicle comes with a maintenance plan. 

Option 2: A travel allowance to the value of R180 000 per annum, to cover all running costs of his new vehicle. 

Option 3: A salary increase of R180 000 per annum, to cover the running costs of his new vehicle.  In the previous year of assessment, Sipho travelled an average distance of 25 000 km with his vehicle, of which 15 000 was for business purposes. 

He estimates that he will cover the same distance this year.

Assume Sipho has a taxable income of R500 000 for the 2021 year of assessment prior to implementation of these options. 

 Question: 

Which option will be most tax efficient for Sipho to implement ?

How an individual's estate will be distributed, if they had a valid will in place and passed away within 3 months of divorce?