Part A $(10)$

Ahmed Mkhize is a $42$ year$-$old single male resident of South Africa. He inherited a $5$ bedroom house situated in Dundee

from his grandfather. As he works in Durban he decided to sell the house for R$1350000.$ The value of the house was

estimated at R$1200000$ by the property valuator. The house was sold on $31$ August $2021.$ Immediately after he received

the money from the sale of the house, he invested it with a private local company, Coral Property Investment. By $28$

February $2022,$ he earned a dividend of $4\%$ based on his total investment.

Ignore VAT.

Required:

Discuss with reference to the gross income definition whether or not the amounts received by Ahmed will form part of his

gross income for the year ended $28$ February $2022.$

Part B $(20)$

The following information of Ahmed relates to the $2023$ year of assessment:

Income

He earned a salary of R$480000.$

Net rentals of R$60000$ were earned from a residential flat.

Interest of R$32000$ was received from a fixed deposit. In addition, foreign dividends of $$800$ was earned, after a withholding

tax of $10\%$ was deducted. In terms of section $25$D$(3),$ he elected that the foreign dividends be translated into rand by

applying the average exchange rate. Assume the average exchange rate for the $2023$ year of assessment to be $$1$ :

R$17\mathrm{.}50.$

Expenses

Ahmed contributed R$7500$ a month to a medical scheme for himself and his mum who resides with him. He incurred no out

of pocket medical expenses for the year.

Ahmed does not belong to any retirement nor pension fund.

He paid R$8500$ provisional tax for the year.

Required:

Calculate Ahmed Mkhize$$s net tax liability for the $2023$ year of assessment