On 1 November 2022, he was provided with the use of a new laptop. He is...

 

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On 1 November 2022, he was provided with the use of a new laptop. He is allowed to use the laptop both at the office and at home. Approximately 85% of the use was for business purposes. Global Capital (Pty) Ltd purchased the laptop for R12 000 on 15 October 2022. Medical ald Nkululeko made a monthly contribution of R4 500 to a medical aid scheme. Nkululeko' wife and their minor daughter are dependants on his medical aid. Global Capital (Pty) Ltd contributed R3 000 per month to Nkululeko's medical aid for the full year of assessment. Nkululeko's daughter is an avid soccer player, but unfortunately broke her toe during a school soccer match in January 2023 and had to undergo internal fixation surgery. Nkululeko's medical aid did not cover the full amount due for the surgery and he had to pay R30 000 relating to the surgery. The hospital agreed that he can pay 50% of the outstanding amount by 28 February 2023 and the other 50% is due 31 March 2023 Nkululeko had no other medical expenses that his medical aid did not cover for the 2023 year of assessment. Assume Nkululeko had a taxable income (correctly calculated) of R652 000 for the 2023 year of assessment. ANNEXURE 1: FORMATIVE ASSESSMENT 2 REQUIRED: 1.1 1.2 a c) With reference to the information under Use of laptop, discuss the income tax consequences for Nkululeko's 2023 year of assessment. Specifically, support your answer with references to the Seventh Schedule of the Income Tax Act. (8 marks) Competency Framework Reference: E1.3 Application of tax legislation to calculate tax obligation- Analyse the taxpayer's tax profile. Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies Tax implications for selected aspects of decision-making Advise on the tax consequences of different compensation structures and remuneration packages from the perspective of both the employer and the employee. e) With reference to the information under Medical aid, calculate ALL (medical and other) rebates that will be available to Nkululeko for the 2023 year of assessment. C8.1 E1.2 b) (15 marks) Interpretation of tax legislation Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation. On 1 November 2022, he was provided with the use of a new laptop. He is allowed to use the laptop both at the office and at home. Approximately 85% of the use was for business purposes. Global Capital (Pty) Ltd purchased the laptop for R12 000 on 15 October 2022. Medical ald Nkululeko made a monthly contribution of R4 500 to a medical aid scheme. Nkululeko' wife and their minor daughter are dependants on his medical aid. Global Capital (Pty) Ltd contributed R3 000 per month to Nkululeko's medical aid for the full year of assessment. Nkululeko's daughter is an avid soccer player, but unfortunately broke her toe during a school soccer match in January 2023 and had to undergo internal fixation surgery. Nkululeko's medical aid did not cover the full amount due for the surgery and he had to pay R30 000 relating to the surgery. The hospital agreed that he can pay 50% of the outstanding amount by 28 February 2023 and the other 50% is due 31 March 2023 Nkululeko had no other medical expenses that his medical aid did not cover for the 2023 year of assessment. Assume Nkululeko had a taxable income (correctly calculated) of R652 000 for the 2023 year of assessment. ANNEXURE 1: FORMATIVE ASSESSMENT 2 REQUIRED: 1.1 1.2 a c) With reference to the information under Use of laptop, discuss the income tax consequences for Nkululeko's 2023 year of assessment. Specifically, support your answer with references to the Seventh Schedule of the Income Tax Act. (8 marks) Competency Framework Reference: E1.3 Application of tax legislation to calculate tax obligation- Analyse the taxpayer's tax profile. Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies Tax implications for selected aspects of decision-making Advise on the tax consequences of different compensation structures and remuneration packages from the perspective of both the employer and the employee. e) With reference to the information under Medical aid, calculate ALL (medical and other) rebates that will be available to Nkululeko for the 2023 year of assessment. C8.1 E1.2 b) (15 marks) Interpretation of tax legislation Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation.

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Nkululekos Income Tax Consequences 11 Use of Laptop 8 marks Fringe benefit arises Providing the lapt... View the full answer