Exhibit $4$

Memo from Thabo Molefe

From: Thabo Molefe

To: Tax Manager

Subject: Salary restructuring.

Tonota Wholesalers employs Mussa Molelekwa. Kgari Distributors recently approached him about

working for them. Mussa seeks advice on whether the compensation package being offered by Kgari

Distributors is superior to his present deal.

P

Current package from Tonota Wholesalers:

Annual salary $520000$

Anticipated bonus $50000$

Medical aid $$ company contribution $15000$

Pension $$ company contribution $52000$

Proposed package by Kgari Distributors:

Annual salary $420000$

Medical aid $$ company contribution $15000$

School fees $25000$

Company house of $200$ square metres

Company car costing P$150000$

Mussa currently has the following annual outgoings:

$1.$ House rentals $48000$

$2.$ School fees $25000$

$3.$ Costs of running his own car $18000$

$4.$ Personal pension contribution to Tonota Wholesalers$$ pension fund $26000$

Q P $-$ A S R $-001|$ R e v $001$ E f f D a t e : $09-0$

$8-2023$

Page $9$ of $10$

REQUIRED:

Mussa Molelekwa's tax liability and net cash flow from each job package should be calculated, and

you should advise him on whether to accept Kgari Distributors' offer after calculating these numbers.

Note: In your calculations of taxable income indicate any items which are not taxable using a zero.

$[20$ Marks$]$