Question $2$

$[20$ marks$]$

You are a newly qualified tax consultant for a firm in the small town, De Doorns in Western Cape Province. Your manager has requested you to assist with a client's tax affairs for the year ending $28$ February $2025.$

You have received the information below from your manager regarding the relevant client:

Brian Griffin received local interest of R$3500$ quarterly during the year of assessment. Brian will also receive a local dividend of R$15000$ and foreign dividend of R$45000$ during the current year of assessment.

Due to the nature of his position, Brian Griffin is required to own a cell phone to be available as and when required by clients and management. Brian Griffin will be entitled to receive a monthly cell phone allowance of R$950$ from $1$ May $2024.$ There are no restrictions to the make$/$model of the cell phone.

Brian Griffin earned a total commission of R$8950$ and an annual bonus of R$24593$ during the year of assessment

To assist Brian Griffin in the execution of his duties in terms of the contract, the employer will provide him with a laptop, which is to be used mainly for business purposes. Brian Griffin is allowed to take the laptop to his place of residence and to use it for personal purposes. The laptop is valued at R$7000,$ and he will be entitled to its use from $1$ May $2024$

Brian placed a bet on soccer and won R$17800$ during the current year of assessment.

The employer paid Brian to the Retirement Fund in terms of its policies and procedures as determined from time to time. Contributions will be made as follows:

Employee contribution: R$4750$ monthly

Employer contribution: R$4750$ monthly

$5$

Required

You are required to calculate the total gross income for the current year of assessment. NB: SHOW ALL YOUR CALCULATIONS TO GET FULL MARKS. Please refer to the relevant sections of the Act and provide reasons for items with no tax impact. Indicate with a R Nil $($RO$)$ where no amount is deducted

$20$ marks

Recommended answer format:

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