Question

 Question 3

Nandi Majola (aged 35) is a resident of the Republic. Nandi is currently employed as an audit manager at Ernest & old (pty) Ltd. The following information relates to Nandi for the year of assessment ended 29 Feb 2020:

1.       Nandi earned a gross salary of R60 000 per month for the 2020 year assessment. On 15 Dec 2019, she received a gross bonus of R80 000.

 

2.       During the 2020 year of assessment, Nandi contributed a total of R57 600 towards the Ernest & old pension Fund. Ernest & old contributed a further R72 000 on her behalf.

 

 

3.       Ernest & old (pty) ltd contributed R2 200 per month for Nandi’s membership of a medical scheme. Nandi is single, and has no dependents. During the 2020 year of assessment, Nandi underwent a procedure which she paid R25 000for, as it was not covered by her medical aid. Nandi does not a disability as defined.

 

4.       Nandi receives a monthly travel allowance of R3 000 for using for own car to travel to client premises during audits. Nandi pays all the expenses for the car but has not kept accurate records of her expenditure for the 2020year of assessment. She has maintained a logbook which reflects that her total distance travelled for the year was 50 000 kilometers, with total business travel amounting to 18 000 kilometers. Nandi’s car cost R275 000  (including VAT)

 

 

5.       Nandi enjoyed a 10-day holiday at the Drakensburg Gardens Resort. Ernest and Old (pty) Ltd owns a time –share scheme in the resort and allows managers to utilize this benefit at no charge. The holiday accommodation could normally be let at a rate of R950 per day.

 

6.       Nandi spent a total of 20 days away from home when she was sent to assist on an out-of-town audit/ Ernest & Old (pty) Ltd provided her with an allowance of R 600 per day to cover meals and incidental costs. Nandi has not kept records of her actual expenditure.

7.       Nandi’s employer withheld R218 204 as employee’s tax from her remuneration for the 2020 year of assessment.

Required:

Calculate Nandi’s net tax payable to / refundable by SARS FOR THE YEAR OF ASSESSMNET ENDED 29 Feb 2020. Assume remuneration of R936 700 for the purposes of calculating Nandi’s pension fund deduction. Round off to the nearest Rand. (30 marks)