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QUESTION $1$

$[20$ MARKS$]$

Sam Sithole is a resident of the Republic. He is $47$ years old and is married in community of property.

The following information relates to the $2023$ year of assessment for Sam and his wife, Meg.

Income from a South African source:

A salary of R$550000$ from his employer, a motor manufacturing company.

He does part$-$time academic work for a private higher education college and earned an income of R$110000$ as part of his business income for the year of assessment.

Net rentals of R$90000$ was earned from a bachelor flat in Margate.

Interest of R$34000$ was earned from various short$-$term investments.

Income from a South African source for Meg:

Rent received from an out$-$house on their property amounted to R$60000.$

Sam made contributions of R$6500$ per month to a medical scheme on behalf of himself, his wife and child. He paid R$48000$ qualifying medical expenses for the year. His employer contributed R$40000$ to the medical scheme during the year.

Required:

Calculate Sam Sithole's normal tax liability for the $2023$ year of assessment.

QUESTION $2$

$[10$ MARKS$]$

Danny Zuma operates a security business in Inanda, Kwazulu$-$Natal. He seeks advice on whether the following expenses and losses are deductible in terms of the general deduction formula:

One of Danny's vans, with a tax value of R$180000$ on the date, was hijacked when the driver was returning after havingtransported a team of guards to a client's business premises in Springfield. The van was not insured.

One of Danny's guards was badly bitten by one of the guard dogs while on duty. The court granted the guard compensation amounting to R$30000$ on $25$ April $2023$ which Danny duly paid on $30$ April $2023.$

Three of Danny's team leaders attended a two$-$day training workshop in Midrand, Johannesburg on the latest security techniques, at a cost of R$16000$ per person.

Required:

Determine with reference to tax cases $($case law$)$ whether the expensesllosses above $[1-3]$ are deductible in terms of the general deduction formula.

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