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Using South Africa's tax tables $($for the $1$ March $2024-28$ February $2025$ tax year$)$

Note: $40\%$ of capital gains for individuals and $80\%$ of capital gains for companies should be

added to taxable income. In South Africa the first R$2000000$ of capital gains of main

residential houses are not tax deductable. The first R$40000$ per annum of capital gains is

exempt from tax for individuals. Companies pay tax at a fixed rate of $27\%.$

a$)$ Mr$.$Galileo, aged $76$ next birthday this year, had the following income and

expenditures during the $2024$ taxable year:

a$.$ The bank paid him investment gains of R$604000.$ R$74937$ of these gains

were from his tax$-$free savings account. The bank already paid $15\%$ tax to

SARS for his taxable gains.

b$.$ He and his friend went gambling and he managed to win R$100000$ at the

casino.

c$.$ He sold his main residential home for R$7000000$ which was purchased for

R$2599000$ in $1984.$ He upgraded this home's kitchen with new for

R$204000.$ He also had to pay R$200000$ in legal and real estate agent fees

regarding the sale which was already included in the sale price.

d$.$ Income from his salary of R$1306930$ per annum.

e$.$ He sold his car he bought for R$752000$ in $2015$ for R$300000.$

f$.$ Mr$.$ Galileo received rental income of R$50,000$ from a property he owns.

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