Bona fide bursary Sippi is a part-time student studying BAcc at Boston City Campus. After passing her first year with flying colours, her employer noted her hard work and as a reward awarded her with a bona fide bursary of R80 000 in January 2023. One of the conditions of the bursary is that should she fail to complete her studies, she will be required to repay the bursary to her employer. Seeing as Sippi is determined to qualify as a CA(SA), she agreed to this requirement. Assume that Sippi received a remuneration of R525 000 from her employer for the 2022 year of assessment. Uniform Chris works as a car salesman and his employer gives him a specific uniform that contains the company's logo and branding. which he is required to wear to work. The uniform given to Chris cost the company R1 000. Relocation Stephen was transferred by his company from their Cape Town branch to their Gauteng branch. The company paid for his transport to relocate and his first month's rent in his new home. Stephen signed the rental agreement for his new home before he relocated so that he did not have to look for accommodation when he arrived in Gauteng. 58 

REQUIRED: 

3.1 With reference to the information under Bona fide bursary, discuss the tax implications that the bona fide bursary will have for Sippi during the 2023 year of assessment. (10 marks) 

3.2 With reference to the information under Uniform, discuss whether the amount paid on behalf of Chris for the uniform is exempt from Chris's normal tax assessment. Clearly state your reason(s). (5 marks) 

3.3 With reference to the information under Relocation, discuss whether the amounts paid on behalf of Stephen for his relocation are exempt from Stephen's normal tax assessment. Clearly state your reason(s)

Answer rating: 100% (QA)

31 Tax Implications for Sippis Bona Fide Bursary Sippis bona fide bursary of R80000 in January 2023 is generally considered taxable income in South Af... View the full answer