Question 4 [15 Marks]

Lanon Pty Ltd purchased a delivery vehicle on 1 November 2021 for an amount of R285 000. Tailor Limited was entitled to a S11 (e) allowance of 20% on the delivery vehicle. The delivery vehicle was sold on 01 January 2023 for an amount of R300 000.

Required: Use the above information to calculate both the tax value and the recoupment for the year ended 28 February 2023.

ANNEXURE: RELEVANT TAX TABLES Tax tables: 2023 Taxable income (R) Rates of tax (R) 1 226 000 18% of taxable income 226 001 353 100 40 680 + 26% of taxable income above 226 000 353 101 488 700 73 726 + 31% of taxable income above 353 100 488 701 641 400 115 762 + 36% of taxable income above 488 700 641 401 817 600 170 734 + 39% of taxable income above 641 400 817 601 1 731 600 239 452 + 41% of taxable income above 817 600 1 731 601 and above 614 192 + 45% of taxable income above 1 731 600 Tax Rebate 2023 Primary R16 425 Secondary (65 and older) R9 000 Tertiary (75 and older) R2 997 Interest Exemptions Interest from a South African source earned by a natural person is exempt, per annum, up to an amount of: 2023 Person younger than 65 R23 800 Person 65 and older R34 500 Table effective for lump sum withdrawal benefit received from 1 March 2014. Taxable Income Rate of Tax R0 R25 000 0% of taxable income R25 001 - R660 000 18% of taxable income above R25 000 R660 001 - R990 000 114 300 + 27% of taxable income above 660 000 5 HTAX201-1-Jan-June 2023-SA1-AM-V2 -27072022 990 001 and above 203 400 + 36% of taxable income above 990 000 Table effective for Retirement & Death Benefits or Severance Benefits from 1 March 2014. Taxable income (R) Rate of tax (R) 0 500 000 0% of taxable income 500 001 - 700 000 18% of taxable income above 500 000 700 001 1 050 000 36 000 + 27% of taxable income above 700 000 1 050 001 and above 130 500 + 36% of taxable income above 1 050 000