here are no results for Gerald Bosch $($Gerald$)(65$ years old$)$ is an electrical engineer for a South African construction company $($Quality Building $($Pty$)$ Ltd $($QB$)).$ Gerald does not own any of QB$$s equity shares. Gerald is married out of community of property to Francette. They have a $24-$year$-$old daughter $($Shani$)$ and a $19-$year$-$old son $($Dan$),$ both full$-$time students at a university and dependant on their parents. Gerald retired on $31$ August $2023,$ after $35$ years employment with QB$.$ Details of Gerald$$s employees$$ tax calculation, as compiled by Gerald for the period, is as follows: Notes R Income$/$receipts$/$benefits Line items $($below: $1$ to $6)$ Salary $(6$ months$)6378001.$ Use of a company$-$owned vehicle $($par$.$ reference to be provided$)1126002.$ Subsistence allowance $($par$.$ reference to be provided$)2100003.$ Retirement fund contribution benefit $3420004.$ Installation of solar system at Gerald$$s house $4600005.$ Severance benefit $5100000$ Total annual equivalent remuneration $862400$ Less: Deductions $6.$ Retirement fund contributions $3(50400)7.$ Medical expenditure $6(20000)$ Total annual equivalent balance of remuneration $792000$ Notes: $1.$ Use of a company$-$owned vehicle QB provided Gerald with a double cab bakkie that cost R$300000($including VAT$)$ from when it was purchased on $1$ March $2020.$ Gerald used the bakkie to visit contracting sites and occasionally for emergencies with the electricity supply at these sites, usually after normal working hours. Gerald was allowed to park the bakkie at his home and kept an accurate logbook for his business travelling, which amounted to $12000$ km out of a total of $15000$ km travelled for the period. Gerald$$s travelling for business purposes was consistently at $80\%$ or more, which he proved to BQ$$s satisfaction. He infrequently used the bakkie for private purposes, except for commuting between his home and for work$-$related purposes. Gerald did not cover any of the bakkie$$s running expenses $($section reference to be provided$).(4)2.$ Subsistence allowance QB paid Gerald R$500$ per day for meals and incidental expenses for each night he spent away from home. This amounted to a total of $20$ days, totalling R$10000.$ Gerald spent the full allowance each day and provided proof of his expenses $($par$.$ reference to be provided$).(3)3.$ Retirement fund contributions Gerald paid R$50400$ and QB paid R$42000($on Gerald$$s behalf$)$ in respect of contributions to a provident fund during the period of his employment. Gerald also made a once off contribution of R$90000$ towards a retirement annuity fund, of which QB is not aware. Gerald had a balance of disallowed retirement fund contributions of R$38000$ on $28$ February $2023.$ Gerald received a lump sum of R$1200000$ from his provident fund on $31$ August $2023.$ He used R$600000$ of the amount to purchase an annuity that would pay him R$7000$ per month from $30$ September $2023,$ for the rest of his life. Line item $3(1)$ Line item $6(4)5$ TAX$3761$ Test $2$ September $2024$ QUESTION $1($continued$)4.$ Installation of solar system at Gerald$$s house QB installed a solar system $($not part of its trading stock$)$ at Gerald$$s house, at a cost of R$60000$ during August $2023.$ The market value of the installation is R$75000.$ QB did this to recognise Gerald for his long loyal service to the company. $(3)5.$ Severance benefit BQ paid Gerald R$100000$ as a severance benefit on $31$ August $2023$ when his employment was terminated. $(2)6.$ Medical expenditure Gerald is not a member of a medical aid fund. He incurred qualifying medical expenses in terms of section $6$B during August $2023.(3)$ REQUIRED: MARKS Part A Gerald has approached you, as a tax practitioner, to advise him on the correctness of his calculation regarding the total annual equivalent balance of remuneration for the $6-$month period he worked at BQ up to $31$ August $2023.$ Address an email to Gerald evaluating each line item $(1$ to $7,$ not per the note numbers$)$ in his calculation. For each item, provide an explanation on the accuracy of the calculation. If applicable, briefly discuss the correct procedure and provide the correct amount$/$figure for each line item. Also indicate, with a reason, if an item is incorrectly applied in the calculation of the total annual equivalent balance of remuneration. Do not redo the entire calculation, as marks could be forfeited