QUESTION 3 (18 MARKS)
Mary (born in 1960) provides you with the following information for the 2018 year of assessment:
| Income from employer | Note | R |
| Salary | 385 000 | |
| Entertainment allowance | 1. | 55 000 |
| Commission income | 400 000 | |
| Annual performance bonus | 120 000 | |
| Uniform Allowance | 2. | 3 000 |
| Investment Income | ||
| SA interest received (Local Bank) | 42 000 | |
| SA Dividends | 6 500 | |
| Foreign Dividends (less than 2% shareholding) | 10 000 | |
| Expenses | ||
| Donation to Wits university (Section 18 A certificate obtained) | 100 000 | |
| Entertainment expenses (Receipts obtained) | 1. | 33 500 |
Notes:
- Mary currently holds the position of Chief Marketing Director and one of her job descriptions are to dine with clients on a regular basis to pitch ideas to potential customers to attract business.
- The Chief Operating Officer who is also Mary’s husband is of the opinion that Mary should look presentable at all times when she represents the company and convince members of the board of directors to allow Mary a uniform allowance monthly for decent clothing.
- Mary’s employer deducted R122 000 PAYE during the year and paid it over to SARS.
- Mary also made a provisional payment of R 20 000 on 31 August 2017 relating to the 2018 year of assessment.
REQUIRED:
Calculate Mary’s net tax liability for the 2018 year of assessment. Round all amounts off to the nearest R.
1 Answer