THIS DOCUMENT CONTAINS TAX1501 ASSESSMENT 4 EXPECTED QUESTIONA AND ANSWERS SEM 2 OF 2023 AND ADDITIONAL PRACTICE QUESTIONS FOR UNITS 1-7. USE IT AS A PRACTICE GUIDE.
Andrew Airlie has been using a company car for private use. The car was acquired for R440 000 including VAT.
Andrew has been driving this car from acquisition (two years and 3 months). No maintenance plan was included in
the purchase cost of the vehicle. Three months into the current year Andrew terminated his contract with his
employer by resigning with immediate effect. The right of use of the same car was immediately transferred to Dylan
Neal, who used the car for the remaining months of the current year of assessment. YOU ARE REQUIRED to
calculate the taxable benefit from the private use of the motor vehicle that needs to be included in Dylan's gross
income for the current year of assessment.
Select one:
a. R33 380
b. R100 139
c. R138 600
d. R46 200
Clear my choice
Question 2
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Sarah is 43 years old. She is a salaried person. During the current year of assessment, she paid income protection
premiums of R8 000, she contributed towards a retirement fund for R12 000, she bought groceries of R7 000, and
made a donation to a public benefit organization of R6 000. Sarah received the section 18A receipt. YOU ARE
REQUIRED to determine the total amount that will be allowed as deductions in the calculation of her taxable
income? (Assume that none of the allowable deductions are subject to any limitations, therefore the full
amount would be deductible).
Select one:
a. R20 000
b. R26 000
c. R33 000
d. R18 000
Clear my choice
,Question 3
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Zabad is 33 years old. He is married to Zared. Zared is 26 years old.
During the current year of assessment Zabad earned the following income:
Foreign dividends of R72 000 from a foreign company in which he holds 12% of total equity shares and voting
rights
Dividends from a South African company of R30 000
Foreign dividends of R30 000 from a foreign company in which he holds 2% of total equity shares and voting
rights
During the current year of assessment Zared earned the following income:
Foreign dividends of R30 000 from a foreign company in which she holds 2% of total equity shares and voting
rights
Zabad and Zared are married in community of property. YOU ARE REQUIRED to calculate Zabad’s gross
income.
Select one:
a. R162 000
b. R132 000
c. R81 000
d. R30 000
Clear my choice
,Question 4
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Luthando and Lihle Mthembu are both members of a medical fund from the 1st April 2021. Luthando’s employer SA
Inc (Pty) Ltd pays R1 750 per month towards the Mthembu’s medical aid contributions and Luthando pays R650 per
month. YOU ARE REQUIRED to calculate the taxable fringe benefit.
Select one:
a. R28 800
b. R19 250
c. R21 000
d. R26 400
Clear my choice
Question 5
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Medicine Care Pty Ltd is a medical company that deals with healthcare and telemedicine. Medicine Care Pty Ltd is
a qualifying micro business. During the current year of assessment Medicine Care Pty Ltd made a profit. This
means that Medicine Care Pty Ltd’s the tax rate that will be used to determine the tax is based on?
Select one:
a. Medicine Care Pty Ltd’s taxable income
b. Medicine Care Pty Ltd’s turnover
c. Medicine Care Pty Ltd’s gross income
d. Medicine Care Pty Ltd’s net asset value
Clear my choice
, Question 6
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Who presents the annual budget speech?
Select one:
a. Commissioner of the South African Revenue Services.
b. Minister of Finance.
c. Receiver of Revenue.
d. Governor of the South African Reserve Bank.
Clear my choice
Question 7
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Mandla Zitha is employed as an audit manager by a firm of chartered accountants. He is required to travel from the
firm’s office to the office of several clients. He is paid an allowance per kilometre travelled in his motor car for
business purposes based on actual business kilometres travelled. The following information relates to her travel
allowance:
Travel allowance received for the year – R40 625
Total kilometres for the year - 25 000 km
Private kilometres for the year - 11 000 km
Mandla uses his car that he purchased for R103 500 (R90 000 cash plus VAT R13 500). YOU ARE
REQUIRED to calculate the business kilometres for the current year of assessment.
Select one:
a. 14 000 km
b. 25 000 km
c. 11 000 km
d. 36 000 km
Clear my choice
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