SECTION A [100 MARKS] Answer ALL the questions in this section. Question 1 (20 Marks) 1. Ryan received a travelling allowance of R72 000 (R6 000 a month) from his employer. He used two vehicles during the year of assessment. 2. Vehicle 1 was purchased second-hand (actual retail market value) for R215 000 (including VAT) and was traded in for vehicle 2. 3. Vehicle 2 (new) cost (actual retail market value) R310 000 (including VAT). 4. During the year of assessment, he used vehicle 1 for 106 days and vehicle 2 for 259 days. He did not keep accurate records of costs incurred. 5. He travelled 10 231 km in vehicle 1 during the 2021 year of assessment and 20 880 km in vehicle 2. 6. His log-books showed that he travelled 4 027 business km in vehicle 1 and 8 085 business km in vehicle 2 during the 2022 year of assessment. YOU ARE REQUIRED: Calculate the taxable amount of the travel allowance for the year of assessment ending in 2022. Question 2 (40 Marks) Raveena is a resident of the Republic. She is 30 years old. She is married in community of property. Her husband did not earn any passive income. The following information relates to the 2021 year of assessment for Raveena. Income Raveena received from a Republic source: - A salary of R420 000. - Net rentals of R40 000 were earned from a beach cottage. - Interest of R24 000 was earned from a fixed deposit. Foreign income received by Raveena: - Foreign dividends of $760, before a withholding tax of 10% was deducted as a rebate. These dividends are not exempt in terms of section 10B(2). - Interest of 165 on an investment inherited from her aunt. The inheritance and the income on it are excluded from their joint estate. This interest was not subject to a withholding tax. - Assume the average exchange rates for the 2021 year of assessment were $1 : R15 and 1 : R18 respectively. In terms of section 25D(3), she elected that her foreign receipts and accruals be translated into rand by applying the average exchange rate. The expenditure incurred by Raveena for the 2021 year of assessment was as follows: - She did not belong to a pension fund or a provident fund. - She contributed R40 000 to an approved retirement annuity fund.