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Sophia Bennett is 4 7 years old and unmarried. She was employed as a marketing manager at Digiwave ( Pty ) Ltd for a number
Sophia Bennett is years old and unmarried. She was employed as a marketing manager at Digiwave Pty Ltd for a number of years, however in January she resigned from her employment. The following information relates to Sophias year of assessment: Sophia earned a cash salary of R per month from Digiwave Pty Ltd until her resignation. Digiwave Pty Ltd purchased a Chery Tiggo on January at a retail market value of Rincluding VAT of R which included a maintenance plan covering a total of km Sophia had use of this vehicle from January until her resignation to travel to various clients as well as for private purposes. Sophia paid for all the fuel private and business which amounted to R during the period of assessment. She kept all the fuel receipts as well as her detailed logbook She travelled a total of km during the current year of assessment, of which km was for business. Sophia contributed of her basic salary to the Allan Moore Pension Fund. Additionally, she paid R per month towards medical aid. She and her yearold daughter are members of the medical aid fund. Unfortunately, Sophia cancelled her medical aid upon her resignation and her last contribution was made on January Sophia began trading in her own name on February by running an online retail store. She withdrew the total amount of R in her pension reserve on January to fund her new business venture. This is the first time she has received any amount from a retirement fund. A tax directive was received from the South African Receiver of Revenue by the Allan Moore Pension Fund. During the year of assessment, Sophias online store made an assessed loss of R Required: Q Calculate the employees tax to be withheld by Digiwave Pty Ltd from Sophia Bennets remuneration for the month of January Round to the nearest rand. The Independent Institute of Education Pty Ltd Page of Q What is the purpose of a tax directive for lumpsums? Q Calculate the actual tax payable on the lumpsum received from Allan Moore Pension Fund for January Q Provide brief reasons why, purely from a tax perspective, Sophia should not have opted to have the maximum amount paid out to her from the pension fund upon her resignation on January Calculations are not requiredSophia Bennett is years old and unmarried. She was employed as a marketing manager at Digiwave Pty Ltd for a number of years, however in January she resigned from her employment. The following information relates to Sophias year of assessment: Sophia earned a cash salary of R per month from Digiwave Pty Ltd until her resignation. Digiwave Pty Ltd purchased a Chery Tiggo on January at a retail market value of Rincluding VAT of R which included a maintenance plan covering a total of km Sophia had use of this vehicle from January until her resignation to travel to various clients as well as for private purposes. Sophia paid for all the fuel private and business which amounted to R during the period of assessment. She kept all the fuel receipts as well as her detailed logbook She travelled a total of km during the current year of assessment, of which km was for business. Sophia contributed of her basic salary to the Allan Moore Pension Fund. Additionally, she paid R per month towards medical aid. She and her yearold daughter are members of the medical aid fund. Unfortunately, Sophia cancelled her medical aid upon her resignation and her last contribution was made on January Sophia began trading in her own name on February by running an online retail store. She withdrew the total amount of R in her pension reserve on January to fund her new business venture. This is the first time she has received any amount from a retirement fund. A tax directive was received from the South African Receiver of Revenue by the Allan Moore Pension Fund. During the year of assessment, Sophias online store made an assessed loss of R Required: Q Calculate the employees tax to be withheld by Digiwave Pty Ltd from Sophia Bennets remuneration for the month of January Round to the nearest rand. The Independent Institute of Education Pty Ltd Page of Q What is the purpose of a tax directive for lumpsums? Q Calculate the actual tax payable on the lumpsum received from Allan Moore Pension Fund for Jan
Sophia Bennett is years old and unmarried. She was employed as a marketing manager at
Digiwave Pty Ltd for a number of years, however in January she resigned from her
employment.
The following information relates to Sophias year of assessment:
Sophia earned a cash salary of R per month from Digiwave Pty Ltd until her
resignation.
Digiwave Pty Ltd purchased a Chery Tiggo on January at a retail market value of
Rincluding VAT of R which included a maintenance plan covering a total of
km Sophia had use of this vehicle from January until her resignation to
travel to various clients as well as for private purposes. Sophia paid for all the fuel private
and business which amounted to R during the period of assessment. She kept all
the fuel receipts as well as her detailed logbook She travelled a total of km during
the current year of assessment, of which km was for business.
Sophia contributed of her basic salary to the Allan Moore Pension Fund. Additionally,
she paid R per month towards medical aid. She and her yearold daughter are
members of the medical aid fund. Unfortunately, Sophia cancelled her medical aid upon her
resignation and her last contribution was made on January
Sophia began trading in her own name on February by running an online retail store.
She withdrew the total amount of R in her pension reserve on January to
fund her new business venture. This is the first time she has received any amount from a
retirement fund. A tax directive was received from the South African Receiver of Revenue by
the Allan Moore Pension Fund.
During the year of assessment, Sophias online store made an assessed loss of
R
Required:
Q Calculate the employees tax to be withheld by Digiwave Pty Ltd from Sophia
Bennets remuneration for the month of January
Round to the nearest rand.
The Independent Institute of Education Pty Ltd
Page of
Q What is the purpose of a tax directive for lumpsums?
Q Calculate the actual tax payable on the lumpsum received from Allan Moore
Pension Fund for January
Q Provide brief reasons why, purely from a tax perspective, Sophia should not have
opted to have the maximum amount paid out to her from the pension fund upon
her resignation on January
Calculations are not requiredSophia Bennett is years old and unmarried. She was employed as a marketing manager at
Digiwave Pty Ltd for a number of years, however in January she resigned from her
employment.
The following information relates to Sophias year of assessment:
Sophia earned a cash salary of R per month from Digiwave Pty Ltd until her
resignation.
Digiwave Pty Ltd purchased a Chery Tiggo on January at a retail market value of
Rincluding VAT of R which included a maintenance plan covering a total of
km Sophia had use of this vehicle from January until her resignation to
travel to various clients as well as for private purposes. Sophia paid for all the fuel private
and business which amounted to R during the period of assessment. She kept all
the fuel receipts as well as her detailed logbook She travelled a total of km during
the current year of assessment, of which km was for business.
Sophia contributed of her basic salary to the Allan Moore Pension Fund. Additionally,
she paid R per month towards medical aid. She and her yearold daughter are
members of the medical aid fund. Unfortunately, Sophia cancelled her medical aid upon her
resignation and her last contribution was made on January
Sophia began trading in her own name on February by running an online retail store.
She withdrew the total amount of R in her pension reserve on January to
fund her new business venture. This is the first time she has received any amount from a
retirement fund. A tax directive was received from the South African Receiver of Revenue by
the Allan Moore Pension Fund.
During the year of assessment, Sophias online store made an assessed loss of
R
Required:
Q Calculate the employees tax to be withheld by Digiwave Pty Ltd from Sophia
Bennets remuneration for the month of January
Round to the nearest rand.
The Independent Institute of Education Pty Ltd
Page of
Q What is the purpose of a tax directive for lumpsums?
Q Calculate the actual tax payable on the lumpsum received from Allan Moore
Pension Fund for Jan
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