Sophia Bennett is $47$ years old and unmarried. She was employed as a marketing manager at

Digiwave $($Pty$)$ Ltd for a number of years, however in January $2024$ she resigned from her

employment.

The following information relates to Sophia$$s $2024$ year of assessment:

$1)$ Sophia earned a cash salary of R$40000$ per month from Digiwave $($Pty$)$ Ltd until her

resignation.

$2)$ Digiwave $($Pty$)$ Ltd purchased a Chery Tiggo on $22$ January $2023$ at a retail market value of

R$414000($including VAT of R$54000),$ which included a maintenance plan covering a total of

$60000$ km$.$ Sophia had use of this vehicle from $31$ January $2023$ 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$29500$ during the period of assessment. She kept all

the fuel receipts as well as her detailed logbook$.$ She travelled a total of $15400$ km during

the current year of assessment, of which $9240$ km was for business.

$3)$ Sophia contributed $8\%$ of her basic salary to the Allan Moore Pension Fund. Additionally,

she paid R$3000$ per month towards medical aid. She and her $6$year$$old daughter are

members of the medical aid fund. Unfortunately, Sophia cancelled her medical aid upon her

resignation and her last contribution was made on $31$ January $2024.$

$4)$ Sophia began trading in her own name on $02$ February $2024$ by running an online retail store.

She withdrew the total amount of R$960000$ in her pension reserve on $31$ January $2024$ 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.

$5)$ During the $2024$ year of assessment, Sophia$$s online store made an assessed loss of

R$33000.$

Required:

Q$\mathrm{.}2\mathrm{.}1$ Calculate the employees$$ tax to be withheld by Digiwave $($Pty$)$ Ltd from Sophia

Bennet$$s remuneration for the month of January $2024.$

Round to the nearest rand.

$(10)$

$242024$

$$ The Independent Institute of Education $($Pty$)$ Ltd $2024$

Page $6$ of $11$

Q$\mathrm{.}2\mathrm{.}2$ What is the purpose of a tax directive for lumpsums? $(3)$

Q$\mathrm{.}2\mathrm{.}3$ Calculate the actual tax payable on the lumpsum received from Allan Moore

Pension Fund for January $2024.$

$(2)$

Q$\mathrm{.}2\mathrm{.}4$ 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 $31$ January $2024.$

Calculations are not requiredSophia Bennett is $47$ years old and unmarried. She was employed as a marketing manager at

Digiwave $($Pty$)$ Ltd for a number of years, however in January $2024$ she resigned from her

employment.

The following information relates to Sophia$$s $2024$ year of assessment:

$1)$ Sophia earned a cash salary of R$40000$ per month from Digiwave $($Pty$)$ Ltd until her

resignation.

$2)$ Digiwave $($Pty$)$ Ltd purchased a Chery Tiggo on $22$ January $2023$ at a retail market value of

R$414000($including VAT of R$54000),$ which included a maintenance plan covering a total of

$60000$ km$.$ Sophia had use of this vehicle from $31$ January $2023$ 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$29500$ during the period of assessment. She kept all

the fuel receipts as well as her detailed logbook$.$ She travelled a total of $15400$ km during

the current year of assessment, of which $9240$ km was for business.

$3)$ Sophia contributed $8\%$ of her basic salary to the Allan Moore Pension Fund. Additionally,

she paid R$3000$ per month towards medical aid. She and her $6$year$$old daughter are

members of the medical aid fund. Unfortunately, Sophia cancelled her medical aid upon her

resignation and her last contribution was made on $31$ January $2024.$

$4)$ Sophia began trading in her own name on $02$ February $2024$ by running an online retail store.

She withdrew the total amount of R$960000$ in her pension reserve on $31$ January $2024$ 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.

$5)$ During the $2024$ year of assessment, Sophia$$s online store made an assessed loss of

R$33000.$

Required:

Q$\mathrm{.}2\mathrm{.}1$ Calculate the employees$$ tax to be withheld by Digiwave $($Pty$)$ Ltd from Sophia

Bennet$$s remuneration for the month of January $2024.$

Round to the nearest rand.

$(10)$

$242024$

$$ The Independent Institute of Education $($Pty$)$ Ltd $2024$

Page $6$ of $11$

Q$\mathrm{.}2\mathrm{.}2$ What is the purpose of a tax directive for lumpsums? $(3)$

Q$\mathrm{.}2\mathrm{.}3$ Calculate the actual tax payable on the lumpsum received from Allan Moore

Pension Fund for Jan