- The term “resident” in the case of a natural person, is defined in section 1 of the Income Tax Act
as:
A. A person who is “ordinarily resident” in South Africa
B. A non-resident who has spent a certain number of days in SA (physical presence test)
C. A and B
D. None of the above - Section 10(1)(i) – Exemption for interest is applicable to:
A. Companies
B. Close Corporations (CC)
C. Natural persons
D. All of the above - Which of the following statements is false?
A. Each spouse in a marriage is taxed separately on his or her taxable income for a particular year of
assessment if they are married out of community of property, unless married in community of
property
B. A change in marital status during a year of assessment does not affect the tax situation of a natural
person.
C. When a minor child or stepchild receives income in his own right, the income is subject to tax in his
own hands, unless it’s a donation, settlement or other disposition.
D. None of the above - Which of the following statements is true?
A. Actual travel allowance received by the employee is fully taxable
B. Travelling between the taxpayer’s place of residence and his or her place of employment is
regarded as business travel
C. Travel allowance is only taxable if the taxpayer keeps records of actual costs incurred
D. Amounts expensed for business purposes can only be claimed under travel allowance if the
taxpayer keeps an accurate logbook. - Namene was granted the right to use the employer-owned motor vehicle with effect from 1 May
- The employer acquired the motor vehicle on 1 March 2016 at a retail market value of
R101 200. The motor vehicle was not subject to any maintenance plan. What is the determined
value of the motor vehicle for the 2020 year of assessment? Round off to the nearest rand
A. R101 200
B. R35 420
C. R62 150
D. R21 753 - Zinhle works at SWR. Her employer provided her, her husband and their two daughters with free
holiday accommodation in a Deluxe chalet at Dolomite Resort (SWR Resort) for 5 days. The normal
accommodation rate for Deluxe chalets is R3 500 a day. What is the cash equivalent of the taxable
income to Zinhle?
A. R0
B. R17 500
C. R3 500
D. R31 500 - Which of the following is not a no value fringe benefit?
A. Meals supplied to employees during overtime hours
B. Company laptop that employee can use after hours for private purposes
C. Employees’ subscriptions paid by an employer to a professional body (membership is not a
requirement of the employee’s employment)
D. Transport service between home and work rendered to employees in general - In the residential accommodation formula (A-B) x C/100 x D/12. If the accommodation provided
has three rooms and is furnished and electricity is provided. What is the value of C?
A. 0
B. 17
C. 18
D. 19 - On 30 November 2019, Mr Charlie received a Rolex watch from his employer as a long service
ward after had completed 15 years of service at the company. The market value of the was R8
625 (Including VAT). VAT is 15%. What is the taxable benefit of the Rolex watch?
A. R0
B. R8 625
C. R7 500
D. R2 500 - Uniform allowance is exempt if:
A. It is a condition of employment to wear special uniform while on duty and it is clearly
distinguishable from ordinary clothing
B. It is a condition of employment to wear special uniform while on duty, but it is clearly
distinguishable from ordinary clothing
C. Uniform is clearly distinguishable from ordinary clothing, and it is condition of employment to
wear special uniform only at special work occasions
D. Employee can wear the uniform when they wan
Test 3 Taxations 202 ,2021
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