Question 1 [34 marks] Read the scenarios below for the year ending 28 February 2023 and...

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Question 1 [34 marks] Read the scenarios below for the year ending 28 February 2023 and answer the following question. A. The following is the income statement of Axe Ltd for the financial year ending 28 February 2023: Sales from services rendered Cost of services rendered Other operating income Exempt income Operating expenses Non-deductible expenses The taxable portion of capital gains Provisional tax paid during the year INCOME Gross income Exempt income (interest received) B. Paul is a 50-year-old mechanical engineer employed for the full year. Paul had the following income and expenses during the year. EXPENSES Allowable deductions Employees' tax paid to SARS during the year R950 000 R400 000 R95 000 R15 000 R300 000 EXPENSES: Allowable deductions R85 000 R40 000 R85 000 HIT1181-Jul-Dec2023-FA1-AM-V3-10072023 R165 000 R22 000 C. Maria is a 19-year-old trainee bookkeeper employed from 1 June 2022 to 31 December 2022. Maria had the following income and expenses during the year: INCOME Gross income Exempt income The portion of capital gains taxable R16 000 R11 000 R80 000 R1 200 R3 000 R4 500 Employees' tax paid to SARS during the year R2 000 Required: Calculate the net normal tax payable/refundable for each taxpayer above for the year ending 28 February 2023. ANNEXURE: Tax tables Rates of tax applicable to individuals and special trusts for the 2022/2023 tax year of assessment: Taxable income R0 to R 226 000 R 226 001 - R 353 100 R 353 101-R 488 700 R 488 701-R 641 400 R 641 401 - R 817 600 R 817 601-R 1 731 600 R 1731 601 + Rates of tax 18% of each R 1 R 40 680 + 26% of the amount above R 226 000 R 73 726 +31% of the amount above R 353 100 R 115 762 +36% of the amount above R 488 700 R 170 734 +39% of the amount above R 641 400 R 239 452 +41% of the amount above R 817 600 R 614 192 +45% of the amount above R 1 731 600 HIT1181-Jul-Dec2023-FA1-AM-V3-10072023 Interest Exemptions Interest from a South African source earned by a natural person is exempt, per annum, up to an amount of Person younger than 65 Person 65 and older Income Tax Rebates for Individuals Primary Secondary (Persons 65 and older) Tertiary (Persons 75 and older) 2023 R16 425 R9 000 R2 997 2023 R23 800 R34 500 Question 1 [34 marks] Read the scenarios below for the year ending 28 February 2023 and answer the following question. A. The following is the income statement of Axe Ltd for the financial year ending 28 February 2023: Sales from services rendered Cost of services rendered Other operating income Exempt income Operating expenses Non-deductible expenses The taxable portion of capital gains Provisional tax paid during the year INCOME Gross income Exempt income (interest received) B. Paul is a 50-year-old mechanical engineer employed for the full year. Paul had the following income and expenses during the year. EXPENSES Allowable deductions Employees' tax paid to SARS during the year R950 000 R400 000 R95 000 R15 000 R300 000 EXPENSES: Allowable deductions R85 000 R40 000 R85 000 HIT1181-Jul-Dec2023-FA1-AM-V3-10072023 R165 000 R22 000 C. Maria is a 19-year-old trainee bookkeeper employed from 1 June 2022 to 31 December 2022. Maria had the following income and expenses during the year: INCOME Gross income Exempt income The portion of capital gains taxable R16 000 R11 000 R80 000 R1 200 R3 000 R4 500 Employees' tax paid to SARS during the year R2 000 Required: Calculate the net normal tax payable/refundable for each taxpayer above for the year ending 28 February 2023. ANNEXURE: Tax tables Rates of tax applicable to individuals and special trusts for the 2022/2023 tax year of assessment: Taxable income R0 to R 226 000 R 226 001 - R 353 100 R 353 101-R 488 700 R 488 701-R 641 400 R 641 401 - R 817 600 R 817 601-R 1 731 600 R 1731 601 + Rates of tax 18% of each R 1 R 40 680 + 26% of the amount above R 226 000 R 73 726 +31% of the amount above R 353 100 R 115 762 +36% of the amount above R 488 700 R 170 734 +39% of the amount above R 641 400 R 239 452 +41% of the amount above R 817 600 R 614 192 +45% of the amount above R 1 731 600 HIT1181-Jul-Dec2023-FA1-AM-V3-10072023 Interest Exemptions Interest from a South African source earned by a natural person is exempt, per annum, up to an amount of Person younger than 65 Person 65 and older Income Tax Rebates for Individuals Primary Secondary (Persons 65 and older) Tertiary (Persons 75 and older) 2023 R16 425 R9 000 R2 997 2023 R23 800 R34 500

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Based on the information provided Ill calculate the net normal tax payable or refundable for each taxpayer for the year ending 28 February 2023 The ca... View the full answer