QUESTION $1(20$ Marks$)$

You are required to explain, giving full, but brief reasons, whether or not the amounts mentioned in each of the scenarios

below will be included in the recipient$$s gross income for the $2024$ year of assessment. Consider any exemptions, where

applicable.

$1\mathrm{.}1$ Ben, a resident of the Republic, operates a small business in South Africa manufacturing toys. The

following items relate to the $2024$ year of assessment:

$(8$ Marks$)$

$$ During May $2023,$ Ben sold toys that he had manufactured in South Africa to a dealer in Botswana for a

cash price of R$70000.$

$$ During September $2023,$ Ben was paid a non$-$refundable deposit of R$35000$ from a customer for a

delivery of toys in October $2023$

$$ Ben gambled at a local casino $$ his net winnings were R$250000.$

$$ Ben invested R$75000$ in September $2023$ in a fixed deposit in a financial institution in Brazil. The interest

earned amounted to R$5750$ monthly.

$1\mathrm{.}2$ Mr and Mrs Kumar were employed at the security agency in the $2024$ year of assessment. Mr Kumar

was required to wear his security uniform on a daily basis and was given R$1000$ per month for a uniform

allowance. Mrs Kumar, was employed as the marketing assistant was given a clothing allowance of R$500$

per month.

$(4$ Marks$)$

$1\mathrm{.}3$ Thomas, a South African resident moved from Cape Town to Johannesburg on $1$ December $2023.$ He

works as an accountant for ABC Stationers and relocated to the branch in Johannesburg. He was given R$75$

$000$ which is equivalent to $3$ months$$ salary. He has been an employee since $2020,$ and his company

incurred the following costs:

$(5$ Marks$)$

$$ Cost of his flight $-$ R$7650$

$$ Accommodation at the hotel paid by employer for December $2023$ R$15000$

$$ Transportation costs to move all his furniture from Cape Town to Johannesburg $$ R$11000$

$$ Painting bought for entrance $-$ R$4500$

$1\mathrm{.}4$ Amy owns a butchery in Durban and rents out spit braais and other braai equipment on weekends. Due

to high demand for her braai equipment, Amy insists that a deposit of $50\%$ of the rental value is paid. If a

customer cancels the order, the deposit is forfeited. During February $2024$ Amy received deposits

amounting to R$10000$ for equipment to be delivered in March $2024.$