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QUESTION $3$

$(20$ Marks$)$

Sizwe received a travel allowance from his employer amounting to R$120000$ for the current year of assessment. He uses his car for business and private travels. He bought this car exactly $1$ year ago for R$420000($including VAT$).$ Sizwe travelled a total of $18000$ kilometres during the current year of assessment, of which $10000km$ were for private purposes. He also kept an accurate record of expenses incurred in respect of the car for the current year of assessment. The costs are as follows:

$\backslash$table$[[,$R$],[$Finance charges,$72000],[$Maintenance cost$,5000],[$Fuel cost$,15000],[$Insurance premiums and licences fees,$4600]]$

REQUIRED:

$3\mathrm{.}1$ Calculate the taxable portion of the travel allowance received by Sizwe for the $2024$ year of assessment.

$(14$ Marks$)$

$3\mathrm{.}2$ Ronald has been granted the right of use of a motor vehicle from his employer and he does not receive a travel allowance. He is responsible for bearing the maintenance costs which amounted to R$38000$ for the $2024$ year of assessment. The company is responsible for the fuel costs. Ronald kept an accurate record of kilometres travelled for private purposes. He travelled $27000$ kilometres for private purposes of his total of $45000$ kilometres travelled for the year. The employer purchased the vehicle for R$345000$ including VAT.

REQUIRED:

Calculate the cash equivalent of the benefit for the current year of assessment.

$(6$ Marks$)$

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