Taxation for Individuads

Practical Application or Examples $2$

Cherise Joshua is resident of the Republic and she is $50$ years old. She resigned from her employment on $30$ August $2040.$ She received a lump sum from her pension fund of $R90000.$ She used $R30000$ of this lump to pay off her car and transferred the remaining balance into a pension preservation fund. In the past, Cherise's pension fund contribution of $R7000$ had not been deducted for tax purposes. Her taxable income for the current year of assessment before the lump sum benefit amounted to R$145000.$

Required:

a$)$ Assuming Cherise had resigned from her previous employment in the year $1999,$ and received a lump sum withdrawal benefit from her previous pension fund, calculate the tax payable on her current lump sum. $q,$

b$)$ Calculate the tax payable by Cherise on the current lump sum that sh received if she received a lump sum withdrawal benefit from her previous pension fund when she resigned from employment in $2023.$ The taxable amount of the lump sum amounted to R$19000.$