QUESTION 4 (15 MARKS)
An employee who is not yet 65 years of age and who is a resident of the Republic, received
the following income for the 2018 year of assessment.
Pensionable Salary R230 000
Overtime R17 000
Bonus R25 000
Interest from South African Banks R24 000
A uniform allowance of R4 000. This uniform can be distinguished from normal clothing.
He was instructed by his employer to take business customers for lunch on a regular basis
and was reimbursement after submitting the original receipts pertaining the expenditure.
The total amount reimbursed was R15 000 for the year.
Tax deducted or paid during the year of assessment is as follows: PAYE R42 177 and other
tax payments of R1 500.
REQUIRED:
Calculate the tax liability for the 2018 year of assessment