Sonia Stewart is employed to the NBC Bank (specified financial institution) as the Senior Manager with responsibility for all branch operations. As part of her job function she makes periodic visits to the branches to ensure each branch is maintaining the policies of the bank. The following is her remuneration package for Year of Assessment 2020: Basic salary $7,500,000 Uniform allowance $ 210,000 Rent allowance $ 490,000 Travelling Allowance $1,900,000 Additional information: 1. Her monthly rent cheque is paid to an independent landlord 2. She is paid a travelling allowance in her capacity as a Senior Manager based on the revised Tax-free Travelling Allowance Rates, approved on 31 January 2019. 3. She received a $9,000,000 loan at an interest rate of 3% per annum from the bank in 2017, which was used to purchase her property. The loan currently has principal outstanding of $5,500,000. She obtained a second loan in 2020 for $1,800,000 at an interest rate of 4% to pursue her MBA. 4. NBC Bank provides her with a credit card. She used the credit card to purchase personal items in July 2018, while she vacationed in Europe. The charges amounted to $240,000 (service & interest charges included), of which 60% was still owing to the company. 5. She contributed 12.5% of her basic salary to an approved pension scheme. 6. She is a member of the UTECH Alumni and in 2020, she contributed $10,000 per month to the University. a Compute Sonia's income tax liability for Year of Assessment 2020 7 marks Sonia Stewart is employed to the NBC Bank (specified financial institution) as the Senior Manager with responsibility for all branch operations. As part of her job function she makes periodic visits to the branches to ensure each branch is maintaining the policies of the bank. The following is her remuneration package for Year of Assessment 2020: Basic salary $7,500,000 Uniform allowance $ 210,000 Rent allowance $ 490,000 Travelling Allowance $1,900,000 Additional information: 1. Her monthly rent cheque is paid to an independent landlord 2. She is paid a travelling allowance in her capacity as a Senior Manager based on the revised Tax-free Travelling Allowance Rates, approved on 31 January 2019. 3. She received a $9,000,000 loan at an interest rate of 3% per annum from the bank in 2017, which was used to purchase her property. The loan currently has principal outstanding of $5,500,000. She obtained a second loan in 2020 for $1,800,000 at an interest rate of 4% to pursue her MBA. 4. NBC Bank provides her with a credit card. She used the credit card to purchase personal items in July 2018, while she vacationed in Europe. The charges amounted to $240,000 (service & interest charges included), of which 60% was still owing to the company. 5. She contributed 12.5% of her basic salary to an approved pension scheme. 6. She is a member of the UTECH Alumni and in 2020, she contributed $10,000 per month to the University. a Compute Sonia's income tax liability for Year of Assessment 2020 7 marks
