Sarah Davis, 55-year—old Namibian citizen had become an employee of ”First for Women”
Insurance on 1St February 2016.
Her receipts and accruals for the 2017 year of assessment include:
- A monthly salary of N$20 000.
- Annual bonus payable in December, N$20 000
- Sales commission of N$25 000 for the year.
- The private use of a motor car with a cost of N$210 000 excluding Vat. The employer
- paid all the expenses, except fuel. The total fuel expenses for the year amounts to N$23000 from which N$7 500 was for private trips.
- A cellular phone allowance of N$400 per month. Her business calls amounted to N$4000 for the year. Davis kept all the relevant records.
- The employer contributed 7% of Davis’ annual basic salary towards a pension fund.
- Davis’ contribution amounts to 8% of her basic annual salary.
- Davis belongs to a medical aid fund for which her contributions amounts to N$18 500 per year.
- She resides in a house, which is leased by her employer. The total monthly rental is N$12 000 of which Davis pays N$3 000. An approved housing scheme with the Receiver of Revenue is in place. She also receives free meals from her employer, which she consumes at home.
- Sarah’s divorce was finalized during the year and in terms of the court order, her ex—husband pays her N$3,000 alimony per month. In addition, the settlement also awarded her their holiday home at the coast. The holiday cottage is valued at N$950,000.
- 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.
- Interest from a Bank Windhoek on a savings account, N$15 000.
- A monthly annuity of N$1 500 as from 15tJuly 2011 received from Sanlam Namibia She purchased the annuity for a cash consideration of N$250 000. Her current life expectancy is 22.65 year
Required:
Calculate the taxable income of Sarah Davis for the 2017 year of assessment
