BZ received a salary of R34 000 for the year ended 31 March 2013. BZ also received a bonus of R1 700 and benefits in kind valued at R2 150. BZ was entitled to a personal tax allowance of R5 750 for the year. Personal taxation rates that apply to BZ are 20% for the first R20 000 of taxable earnings and 40% on the balance. Required: 

(1) Explain the meaning of “benefits in kind” for taxation purposes. 

(2) Prepare an income tax computation for BZ for the year ended 31 March 2013.

Answer rating: 100% (QA)

1 A Benefit in Kind is any noncash benefit of monetary val... View the full answer