QUESTION FOUR [10] During the 2020 year of assessment Karl Naidoo (unmarried, aged 52), a resident...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION FOUR [10] During the 2020 year of assessment Karl Naidoo (unmarried, aged 52), a resident of the Republic, made the fallowing donations: 1. On 25 April 2019, he gave his best friend, Shaun, the lifetime usufruct in his holiday apartment, situated in Cape Town. The value of the usufruct on this date was R1 545 000. 2. On 1 May 2019 he gave his sister a necklace valued at R20 000 as a birthday gift. 3. On 1 July 2019 he gave R45 000 to North West University (an approved Public Benefit Organisation as referred to in section 10(1)(cN) of the Income Tax Act). 4. On 24 December 2019, Karl gave his driver, Abe, a bonus of R25 00. This was to acknowiedge his many years of hard work and loyalty to Karl. 5. On 1 January 2020, Karl gave an amount of R60 000 to his widowed mother. The Commissioner of SARS considers this to be a bona fide contribution to maintenance and regards the amount as reasonable. 6. On 10 January 2020 he gave his niece an annuity of R7 000 per annum for 10 years. The Commissioner does not regard this as a bona fide contribution to maintenance. The value of the annuity on this date was R39 550. Required Calculate the donations tax payable on sach of the above donations made by Karl during the 2020 year of assessment. Show all workings and where there is an exemption applicable, clearly state as such. QUESTION FOUR [10] During the 2020 year of assessment Karl Naidoo (unmarried, aged 52), a resident of the Republic, made the fallowing donations: 1. On 25 April 2019, he gave his best friend, Shaun, the lifetime usufruct in his holiday apartment, situated in Cape Town. The value of the usufruct on this date was R1 545 000. 2. On 1 May 2019 he gave his sister a necklace valued at R20 000 as a birthday gift. 3. On 1 July 2019 he gave R45 000 to North West University (an approved Public Benefit Organisation as referred to in section 10(1)(cN) of the Income Tax Act). 4. On 24 December 2019, Karl gave his driver, Abe, a bonus of R25 00. This was to acknowiedge his many years of hard work and loyalty to Karl. 5. On 1 January 2020, Karl gave an amount of R60 000 to his widowed mother. The Commissioner of SARS considers this to be a bona fide contribution to maintenance and regards the amount as reasonable. 6. On 10 January 2020 he gave his niece an annuity of R7 000 per annum for 10 years. The Commissioner does not regard this as a bona fide contribution to maintenance. The value of the annuity on this date was R39 550. Required Calculate the donations tax payable on sach of the above donations made by Karl during the 2020 year of assessment. Show all workings and where there is an exemption applicable, clearly state as such.
Expert Answer:
Answer rating: 100% (QA)
1 On 25 April 2019 he gave his best friend Shaun the lifetime usufruct in his holiday apartment situ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Karl purchased his residence on January 2, 2013, for $260,000, after having lived in it during 2012 as a tenant under a lease with an option to buy clause. On August 1, 2014, Karl sells the residence...
-
Karl purchased his residence on January 2, 2012, for $260,000, after having lived in it during 2011 as a tenant under a lease with an option to buy clause. On August 1, 2013, Karl sells the residence...
-
Karl purchased his residence on January 2, 2015, for $260,000, after having lived in it during 2014 as a tenant under a lease with an option to buy clause. On August 1, 2016, Karl sells the residence...
-
In 1976, Mohamed EI-Iladad earned an undergraduate accounting degree in his native Egypt. Before he began his accounting career, El-Hadad completed his compulsory service in the Egyptian military...
-
The diving atmosphere used by the U.S. Navy in its undersea Sea-Lab experiments consisted of 0.036 mole fraction O2 and 0.056 mole fraction N2, with helium (He) making up the remainder. What are the...
-
George Zac is a customer services officer for the local community bank. One day, a person walks into the bank looking for a loan to buy a new car. List six items about that individual that George...
-
An emergency flooding system for a nuclear reactor core is shown in Fig. P8.76. Find the power input required to flood the core at the rate of \(5000 \mathrm{gal} / \mathrm{min}\). Assume a...
-
Montana Cycles started July with 25 bicycles that cost $36 each. On July 16, Montana bought 35 bicycles at $60 each. On July 31, Montana sold 33 bicycles for $105 each. Requirements 1. Prepare...
-
Campbell Corporation expects to incur indirect overhead costs of $167,475 per month and direct manufacturing costs of $15 per unit. The expected production activity for the first four months of the...
-
Medical Testing Labs, Inc., provides routine testing services for blood banks in the Los Angeles area. Tests are supervised by skilled technicians using equipment produced by two leading competitors...
-
Determine the input power to an electric motor (nm = 90%) supplying a pump (np = 80%) delivering 50 L/sec of water (p= 1000 kg/m; p = 0.001 kg/m.s) from Tank-1 to Tank-2 as shown below if the...
-
Is it ethical for large firms to unilaterally lengthen their payable periods, particularly when dealing with smaller suppliers? Is an 82-day payables period necessarily bad? Explain.
-
Xstrata plc is currently priced at 10.52. A call option with an expiration of 6 months has an exercise price of 9.00. The risk-free rate is 3 per cent per year, compounded continuously, and the...
-
Charles River Associates is considering whether to refinance either of the two perpetual bond issues the company currently has outstanding. Here is information about the two bond issues: Coupon rate...
-
Pillow Private Bank has the following market value balance sheet: (a) What is the duration of the assets? (b) What is the duration of the liabilities? (c) Is the bank immune from interest rate risk?...
-
This morning you agreed to buy a 1-year Treasury bond in 6 months. The bond has a face value of 100,000. Use the spot interest rates listed here to answer the following questions: (a) What is the...
-
The senior on a CPA firm's largest audit engagement received a request from the client's CFO for a copy of "any communications the firm has sent relating tointernal-control-relatedmatters identified...
-
A statistical study shows that the fraction of television sets of a certain brand that are still in service after x years is given by f (x) = e-0.15x. (a) What fraction of the sets are still in...
-
What are the significant factors in selecting an insurance company?
-
Harry decides to purchase an apartment building as an investment. He pays $6,000,000 for the building. The building has a net income of $150,000, annual depreciation $150,000, annual taxes of...
-
A client has a $1,200,000 portfolio consisting of the following four stocks: 1. $300,000 ABC @ 1.1 beta. 2. $225,000 RTR @ 0.7 beta. 3. $405,000 XYZ @ 0.3 beta. 4. $270,000 PDQ @ 1.3 beta. What is...
-
A \(0.40-\mathrm{m}\) wire carries a current of \(1.7 \mathrm{~A}\) and is at angle to a \(0.20-\mathrm{T}\) uniform external magnetic field. What must be the angle between the wire and the magnetic...
-
A square loop of side \(a=50 \mathrm{~cm}\) is suspended from the left arm of a scale, which is kept at equilibrium by adding weights to the right side. The lower half of the loop is in a uniform...
-
A square loop of wire has a perimeter of \(60 \mathrm{~cm}\) and is oriented such that two of its parallel sides form a \(30^{\circ}\) angle with the horizontal. A uniform horizontal magnetic field...
Study smarter with the SolutionInn App