Tom Riddle spent most of the first sixty years in his native country. He has worked for
Question:
Tom Riddle spent most of the first sixty years in his native country. He has worked for his employer for 30 years at Head Office. Tom was a member of the pension fund for the entire duration of his employment. Tom retired from his employment at the age of 60 years.
He then emigrated to South Africa and has been an ordinary resident of the republic for the past for the past 6 years. Tom has attained the age of 66 during the 2016 YoA.
Three years ago Tom’s father had passed on. His father had been ordinary resident in their native country for his entire life. Tom inherited the following assets:
A rent producing asset (in his native land)
Life time annuity from the estate of his late ‘grandfather’
During the 2016 YoA Tom’s receipts and accruals were as follows:
Pension from his former employer 380000.00
Net Rentals from his rent producing asset 50000.00
Foreign Dividends 18400.00
Interest 38000.00
Net rentals from inherited Rent producing property ` 42000.00
Annuity from late father’s estate 61000.00
Net Rentals from his rent producing asset in SA 24000.00
Interest from Durban Building Society 21900.00
Interest from KZN Bank 3900.00
Local dividends 10000.00
Salary from Part time work in Durban 31500.00
During the 2016 YoA Tom’s expenses included the following:
Interest incurred of R18000.00 on a loan. The proceeds of the loan were used to purchase foreign shares which has yet to yield any dividends.
‘Qualifying’ medical expense of R28610.00
A qualifying Section 18A donation to an approved public benefit organisation of R25000.00
You are required to calculate Tom’s taxable income for the 2016 YoA. for south Africa
Taxation of Individuals 2017
ISBN: 9781259548666
8th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver