QUESTION $1$

$(62$ marks$)$

Grace, a $64-$year$-$old South African resident, has been a full$-$time employee at Stellar Enterprises $(\text{'}$Stellar$\text{'})$ since $1999.$ Stellar is a major player in the financial services sector. The following information relates to Grace's $2024$ year of assessment:

Employment income: Grace earned a salary of R$50000$ per month.

Bonus: She received an annual performance bonus of R$50000.$

Long service award: Grace received a long service award of R$25000$ from Stellar in recognition of her $25$ years of unbroken dedicated service.

Restraint of trade: Grace's employment contract with Stellar specifies that she cannot start a financial advisory business or work part$-$time for a competing firm. Her employer has paid her R$200000$ for the restraint of trade.

Pension contributions: Stellar and Grace each.contributed $3\mathrm{.}5\%$ of her salary to the pension fund monthly up until the day she retired. Grace, who decided to retire on $31$ December $2023$ received the following lump sum payments:

Pension fund lump sum: R$750000$

Monthly annuity $($from $1$ January $2024)$: R$15000$

Leave pay: Grace received R$15000$ for her unused leave days.

Medical expenses: Grace is the primary member of the HealthPlus Medical Scheme and is the sole member of her medical aid plan. During the $2024$ year of assessment, Grace contributed R$2300$ per month, while her employer, Stellar, contributed R$2200$ per month on her behalf. Grace incurred qualifying medical expenses totalling R$50000,$ with R$10000$ reimbursed by the medical aid. After retiring, Grace continued her contributions, paying the full amount of R$4500$ per month from $1$ January $2024.$

cannot start a financial advisory business or work part$-$time for a competing firm. Her employer has paid her R$200000$ for the restraint of trade.

$5.$ Pension contributions: Stellar and Grace each contributed $3\mathrm{.}5\%$ of her salary to the pension fund monthly up until the day she retired. Grace, who decided to retire on $31$ December $2023$ received the following lump sum payments:

Pension fund lump sum: R$750000$

Monthly annuity $($from $1$ January $2024)$: R$15000$

Leave pay: Grace received R$15000$ for her unused leave days.

Medical expenses: Grace is the primary member of the HealthPlus Medical Scheme and is the sole member of her medical aid plan. During the $2024$ year of assessment, Grace contributed R$2300$ per month, while her employer, Stellar, contributed R$2200$ per month on her behalf. Grace incurred qualifying medical expenses totalling R$50000,$ with R$10000$ reimbursed by the medical aid. After retiring, Grace continued her contributions, paying the full amount of R$4500$ per month from $1$ January $2024.$

Capital gain: Grace sold a piece of property, realising a taxable capital gain of R$100000.$

Interest income: She earned R$5000$ in interest from her savings account with a local South African bank.

Accommodation: Stellar provided Grace with temporary residential accommodation in Gauteng from $1$ September $2023$ to $30$ September $2023$ for the time she had to be in Rosebank, Johannesburg to attend conferences on behalf of Stellar. Stellar rented a furnished $4-$bedroom apartment for Linda at a

cost of R$30000$ for the month. Stellar also covered the electricity expense of R$2000.$ Grace's remuneration proxy for the $2024$ year of assessment is R$600000.$

$11.$ Maintenance payment: During the $2023$ year of assessment, Grace's husband filed for divorce, resulting in a maintenance order requiring his retirement fund to pay Grace a monthly maintenance of R$6000.$

$12.$ Donation: On $1$ February $2024,$ Grace donated R$27000$ to the Hope Foundation, a qualifying Section $18$A Public Benefit Organisation.

Stellar paid employees tax amounting to R$200000$ during the $2024$ year of assessment.

REQUIRED:

$1\mathrm{.}1$ Calculate Grace's taxable income for the $2024$ year of assessment as per the appropriate tax framework applicable to natural persons.

Include the applicable section of the Income Tax Act as part of your answer and show all calculations.

Round to the nearest Rand, where applicable.

If an amount is excluded, state this fact and provide a brief reason for your answer.

$(40$ marks$)$