Question 1 (30 marks) Lara Croft, 55-year-old Namibian citizen was an employee of “Tomb Raiders Funeral Home” since 1 March 1996. During the year she decided she has had enough, and resigned on 315t January 2017. Her receipts and accruals for the 2017 year of assessment include:
- A monthly salary of N$40 000.
- She received a motor vehicle allowance of N$126 000 for the year whilst employed. Cost Price of the vehicle when bought in 2015 was N$210 000. Fuel costs for the year was N$24 100, maintenance and insurance was N$19 000. The total kilometers travelled for the year was 41,000 of which 27,000 was for business purposes.
- She also received a housing allowance of N$9 000 per month. An approved housing scheme with the Receiver of Revenue is in place.
- A cellular phone allowance of N$300 per month. Her business calls amounted to N$4 000 for the year. Croft kept all the relevant records.
- To show appreciation for her long service, Croft was awarded N$10 000 during March 2016.
- On resignation, Croft received N$300 000 lump sum from the pension fund and N$100 000 from Tomb Raiders. She immediately transferred one third of the lump sum to an approved preservation fund.
- The employer contributed 7% of Croft’s annual basic salary towards a pension fund. Croft’s contribution amounts to 10% of her basic annual salary. She bought a computer from her employer for N$2 000. The cost price when purchased in 2015, was N$6 000 and the current market value is N$3 000. A monthly annuity of N$1 500 as from 1St July 2011 received from Sanlam Namibia.
- She purchased the annuity for a cash consideration of N$250 000. Her current life expectancy is 22.65 years. Required: Calculate the normal tax payable by Lara Croft for the 2017 year of assessment.
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