Doormen Archer. 50 years of age, purchased an annuity with an Insurance company for the rest of her life. She paid a cash consideration of N$200 000 for an annuity of N$2000 per month. She received the first annuity payment on 1 April 2021. As the annuity is for the rest of Archer’s life. her life expectancy at the time of purchasing the annuity is 26.71 years (based on her birthday before taking the annuity.
Calculate the taxable part of the annuity for the year of assessment ended 28 February 2022.
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