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Monicca Monyai, a 23-year-old trainee at an audit firm, has provided her financial information for the 2025 tax year, including a gross salary of R222,000, a performance bonus of R5,000, and a travel allowance of R35,000. She also incurred vehicle expenses and received additional income from marking at the University of Pretoria, alongside selling shares in Botswana. The task requires calculating her taxable income for the year, considering her total remuneration of R318,000 and various deductions.

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19 views2 pages

Tutorial Question

Monicca Monyai, a 23-year-old trainee at an audit firm, has provided her financial information for the 2025 tax year, including a gross salary of R222,000, a performance bonus of R5,000, and a travel allowance of R35,000. She also incurred vehicle expenses and received additional income from marking at the University of Pretoria, alongside selling shares in Botswana. The task requires calculating her taxable income for the year, considering her total remuneration of R318,000 and various deductions.

Uploaded by

lisamoley53
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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QUESTION 6 (20 marks, 40 minutes)

Monicca Monyai (23 years old) started a 3-year training contract at an audit firm on
1 January 2024. She has asked you to assist her with her tax return.

Information relating to Monicca

She has provided you with the following financial information relevant to her 2025 year
of assessment:

1. Monicca gets paid by the audit firm according to the following annual
remuneration package:

Gross Salary R222 000


Performance bonus for 2025 (paid on 31 March 2025) Point 2 R5 000
Travel allowance Point 3 R35 000
Contributions by employer to Pension Fund Point 5 R12 000
Total R274 000

2. This is the first and only performance bonus that she has received since she started
working.

3. Monicca receives a monthly travel allowance because she is often required to


travel to audit clients. Monicca owns a Polo Vivo that she purchased on 1 February
2024 for R180 000 (inclusive of VAT and excluding any finance costs). She uses
her own vehicle to travel to clients and her logbook (accurately kept) reflects the
following:

2025 year of assessment Kilometres


Total 25 000
Business 20 580
Private 4 420

Monicca incurred the following actual expenditure relating to her vehicle for the 2025
year of assessment:

Costs RAND
Fuel costs 30 000
Maintenance costs 6 000
Insurance 3 000
License costs 1 200
4. She travelled to Cape Town from 10 to 19 July 2024 (10 days) to audit a client.
She incurred costs of R4 800 in total for meals and incidental costs. She kept all
the receipts for these costs. She received an allowance of R7 000 from her
employer.

5. Monicca makes a monthly contribution to the pension fund of 7.5% of her gross
salary paid by the audit firm. The employer made contributions of R12 000 (R1 000
per month) as mentioned above in her annual remuneration package. This pension
fund has been in existence since 1 January 2024. You may assume Monicca’s
remuneration amounted to R318 000 for the 2025 year of assessment.

6. She also marks for one of the departments at the University of Pretoria and gets
paid a rate of R150 per hour. She spent a total of 80 hours marking for four different
assessments during the 2025 year of assessment. This amount was the only
amount paid to her by the University.

7. Monicca sold shares that she held in a company incorporated in Botswana. The
purchaser paid her in Pula’s (local currency in Botswana) on 1 October 2024. She
purchased these shares for R10 000 (Rand equivalent) in 2020 and sold them for
P44 000 (Pula’s) on 1 October 2024. The spot rate on 1 October 2024 is R1.30:P1.

She did not earn income from any other trade during the 2025 year of assessment,
other than those mentioned above. Monicca has indicated that she also did not sell
any assets, other than those mentioned in point 7 above.

REQUIRED:
1. Calculate Monicca’s taxable income for the 2025 year of
assessment. You may assume a remuneration for the year of
R318 000.
 Round amounts to the nearest Rand.
 Provide reasons for nil effects.
 Show all considerations.

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