Timone retired on 30 November 2021 at the age of 67. On retirement, he received the...

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Timone retired on 30 November 2021 at the age of 67. On retirement, he received the following amounts: • A lump sum amount of R69 000 from his employer. • A lump sum of R975 000 from his provident fund. While he was a member of the provident fund, contributions of R323 000 were not deductible for income tax purposes. On 30 November 2019, Timone received a lump sum amount of R590 000 from a retirement annuity fund he was a member of. He reached retirement age in terms of the annuity contract. REQUIRED: Calculate the tax payable on the lump sums received by Timone on 30 November 2021. Timone retired on 30 November 2021 at the age of 67. On retirement, he received the following amounts: • A lump sum amount of R69 000 from his employer. • A lump sum of R975 000 from his provident fund. While he was a member of the provident fund, contributions of R323 000 were not deductible for income tax purposes. On 30 November 2019, Timone received a lump sum amount of R590 000 from a retirement annuity fund he was a member of. He reached retirement age in terms of the annuity contract. REQUIRED: Calculate the tax payable on the lump sums received by Timone on 30 November 2021.

Answer rating: 100% (QA)

Lump Sum from Employer R69 000 Taxable Portion R69 000 23 R46 000 Tax payable R46 000 18 R8 280 ... View the full answer