USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 3 AND 4 Rueben Nyamayi is 54 years old. He is married and has one 17-year-old child. He had the following income and expenses for the current year of assessment: Income Salary R150 000 Bonus received (non-pensionable) R13 000 Dividends: From a South African company R2 800 Taxable foreign dividend R26 200 Interest received: South African savings account R23 400 Foreign bank account R5 290 Rental income from a source within South Africa R26 000 2 Expenses Medical expenses Rueben belongs to a medical aid scheme. His wife and daughter are listed as dependents. His employer contributes R800 per month to the medical aid scheme in respect of his membership, and Rueben contributes R850 per month. Rueben incurred further qualifying medical expenses of R25 500 during the year of assessment. These expenses were not covered by his medical aid. Pension fund contribution for the year current 8% of salary Retirement annuity fund contributions on monthly basis current R350 Rueben pays 100% of his contributions to all retirement funds. He made the following donations during the year: Donation to Natal University R500 Donation to AIDS crisis centre (public benefit organisation) R7 500 Local Boy Scout Troop (not a public benefit organisation) R1 500 During the year of assessment, Rueben was obliged to spend four days away from his usual place of residence in the Republic for business purposes. He received an allowance of R2 500 from his employer. He is able to prove that he incurred expenses of R900 on meals and incidental expenditure. In addition to the above amounts, Rueben realised a capital gain of R80 000 and capital loss of R10 000 during the current year of assessment. Prepaid taxes An amount of R10 400 was deducted by his employer from his monthly salary for employees tax. Rueben is a registered provisional taxpayer and he paid provisional tax of R4 000 during the current year of assessment. Question 4 (16 Marks) Assuming Ruebens taxable income before retirement fund and donation deductions is R249 282, calculate his taxable income for the 2019 year of assessment (after donation and retirement fund deductions) APPENDICES Appendix 1: tax table for 2019 tax year (1 March 2018 28 February 2019)

Taxable income (R) Tax rate (R)

(R) 0 195 850 18% of taxable income

195 851 305 850 35 253 + 26% of taxable income above 195 850

305 851 423 300 63 853 + 31% of taxable income above 305 850

423 301 555 600 100 263 + 36% of taxable income above 423 300

555 601 708 310 147 891 + 39% of taxable income above 555 600

708 311 1 500 000 207 448 + 41% of taxable income above 708 310

1 500 001 and above 532 041 + 45% of taxable income above 1 500 000

Appendix 2: Tax rebates for 2019 tax year (1 March 2018 28 February 2019)

Tax rebate

Tax Rebate Primary R 14 067

Secondary (65 and older, but under 75) R 7 713

Tertiary (75 and older) R 2 574 Appendix 3: Medical tax credit rates for 2019 tax year (1 March 2018 28 February 2019)

Medical tax credit rate per month

For taxpayer who paid the medical scheme contributions R 310

For the first dependant R 310

For each additional dependan(s) R 209 Appendix 4: Deemed cost per kilometer for 2019 tax year (1 March 2018 - 28 February 2019)

Value of the vehicle (R) Fixed cost per annum (R) Fuel cost (cent/km) Maintenance cost (cent/km) 0 - 85 000 28 352 95.7 34.4

85 001 - 170 000 50 631 106.8 43.1

170 001 - 255 000 72 983 16.0 47.5

255 001 - 340 000 92 683 124.8 51.9

340 001 - 425 000 112 443 133.5 60.9

425 001 - 510 000 133 147 153.2 71.6

510 001 - 595 000 153 850 158.4 88.9

more than 595 000 153 850 158.4 88.9