QUESTION $2(35$ Marks$)$

James Patel is a resident of the Republic. He is $67$ years old and is married out of community of property to Bianca.

During the $2024$ year of assessment, James had the following receipts, accruals and expenses:

$1)$ A salary of R$360000$ from his employer, a plastic manufacturing company.

$2)$ A bonus of R$45000($non$-$pensionable$).$

$3)$ Net rentals of R$112000$ was earned from a bachelor flat in Sandton.

$4)$ Interest of R$28000$ was earned from various short$-$term investments.

$5)$ A long service award of R$30000$ was granted to James for $16$ years of service.

$6)$ James was granted the right of use of a motor vehicle by his employer on $1$ March $2023.$ The company purchased

the vehicle on the same day for an amount of R$420000($including VAT$).$ The vehicle did not have a maintenance plan.

James used the vehicle primarily for private purposes and did not keep a logbook$.$

$7)$ James was granted the use of the laptop by his employer from $1$ August $2023.$ It was used for private purposes. The

market value on $1$ August $2023$ was R$6750.$ It was bought for R$12250.$

$8)$ Foreign interest of R$3500$ was earned.

$9)$ He holds $8\%$ of the total equity shares and voting rights in ABC Inc $($a foreign company$).$ He incurred expenditure of

R$5000$ in the form of interest on a loan taken out to purchase the shares. He received a dividend of R$48000$ from ABC

Inc.

$10)$ James made contributions of R$6500$ per month to a medical scheme on behalf of himself, his wife and child. He

paid R$54000$ qualifying medical expenses for the year. His employer contributed R$40000$ to the medical scheme during

the year.

$11)$ He paid R$33500$ in the $2024$ year of assessment for municipal levies for his private household.

$12)$ A provisional tax payment of R$20000$ was also made on $31$ August $2023.$

Required:

Calculate James Patel$$s normal tax liability for the $2024$ year of assessment. $(35$ Marks$)$

$($Set your answer out according to the normal tax model $/$ tax framework. Show all calculations and round off

all amounts to the nearest rand. Include nil value items in your answer.$)$