You are currently a Tax clerk at Malatji Tax Consulting in Phalaborwa (Limpopo). You are responsible to solve tax matters and answer tax queries received from clients. On 28 February 2022 you received the below Tax query. E-mail 1 To: Tax clerk From: Bennie Freddy Below is the information of one of Cosmos (Pty) Ltd.'s employees, Mrs. Karin a 43- year-old resident of South Africa. Description Salary Right to use company car from employer Local Interest Foreign Interest Rental income Foreign dividend (less than 10% shareholding) Medical Contributions by Employer Rental repairs Rental advertisement Daughter's school fees Employees tax Pension Fund Contribution S18A Donations Medical Aid Contribution Notes: Note 1 3 2 Amount 550 000 16 000 5 000 7 500 49 800 10 500 42 000 26 000 4 500 2 000 23 000 4 500 15 000 ? 1. Karin leases her house in Phalaborwa to Masabata. Masabata must pay a monthly rental of R8 300 from the 1st of August 2021. Imran only paid the February rent on the 15th of March 2022. 2. Karin contributes R4500 to a Pension fund per month. In the previous year of assessment, R20 000 worth of contributions to her Pension Fund were unclaimed. 3. Karin is married to Evash. She, her husband, and 3 minor children are members of a registered medical scheme. Her employer made monthly contributions of R3500 to the medical scheme, while she also contributed R7000 a month. The employer's contribution resulted in a fringe benefit of R42 000 in total. She incurred the following medical expenses which were not reimbursed by the medical scheme. Anti-biotics prescribed to her daughter for an ear infection - R6000. Grandpa powder for her constant headaches - R4500. Required: Provide detailed calculations of Karin's tax liability for her 2022 tax year. Marks awarded for giving reasons for the inclusion and non-inclusion of amounts.

You are currently a Tax clerk at Malatji Tax Consulting in Phalaborwa (Limpopo). You are responsible to solve tax matters and answer tax queries received from clients. On 28 February 2022 you received the below Tax query. E-mail 1 To: Tax clerk From: Bennie Freddy Below is the information of one of Cosmos (Pty) Ltd.'s employees, Mrs. Karin a 43 year-old resident of South Africa. Notes: 1. Karin leases her house in Phalaborwa to Masabata. Masabata must pay a monthly rental of R8 300 from the 1st of August 2021. Imran only paid the February rent on the 15th of March 2022. 2. Karin contributes R4500 to a Pension fund per month. In the previous year of assessment, R20 000 worth of contributions to her Pension Fund were unclaimed. 3. Karin is married to Evash. She, her husband, and 3 minor children are members of a registered medical scheme. Her employer made monthly contributions of R3500 to the medical scheme, while she also contributed R7000 a month. The employer's contribution resulted in a fringe benefit of R42 000 in total. She incurred the following medical expenses which were not reimbursed by the medical scheme. - Anti-biotics prescribed to her daughter for an ear infection - R6000. - Grandpa powder for her constant headaches - R4500. Required: Provide detailed calculations of Karin's tax liability for her 2022 tax year. Marks awarded for giving reasons for the inclusion and non-inclusion of amounts