TAXF372 TAX IN ACTION 2023 (20 marks; 60 minutes)

Instructions

This practical-assignment consists of two (2) questions as given below. This practical-assignment
needs to be run and completed under the eFundi “Tests & Quizzes” tab by completing the quiz named
“TAX IN ACTION 15 SEPT 2023! (NB You must do your own work, ethically please. This is not a group
assignment but it is open book)

Carefully do the following:

• Download the Excel document called “2. Q1 STUDENT NUMBER SURNAME INITIAL” to an
accessible place on your PC and rename it to your details for example:
“2. Q1 23227389 VON BENECKE G”

• Downland the PDF document called “3. Q2 STUDENT NUMBER SURNAME INITIAL” to an
accessible place on your PC and rename it to your details for example:
“3. Q2 23227389 VON BENECKE G”

• Now read the case study that follows and complete the required parts on your downloaded
documents.

• Upload your answers to the Question 1 and Question 2 spaces in the eFundi quiz and NB
remember to press “Submit for grading” at the bottom of the screen.

• You can view your submission under the “Test & Quizzes” tab. Only email a back-up copy to
your lecturer should you not be sure that your eFundi submission was successful.

Case study

Vanessa de Matos is a resident of the Republic who lives in Bloemfontein. She is 42 years old and
married out of community of property to Eduardo who is 43 years old. They have one child Christopher
who is 17 years old.

Vanessa is employed on a full-time basis as a senior administrative assistant at a local private hospital.
During the current year of assessment Vanessa also started a part time business of producing
handmade T-shirts from 100% cotton. Vanessa also provides a printing service for the T-shirts.

Vanessa is correctly registered as a provisional taxpayer but is not a registered vendor for value-added
tax (VAT) (you may thus ignore any VAT implications).

Vanessa is preparing to submit her second provisional tax return for the 2023 year of assessment on
28 February 2023 and therefore needs your kind assistance.

After interviewing Vanessa, she provided the following information to you:

1. She has not yet received her notice for income tax assessed (ITA34) for the 2022 year of
assessment since she has not yet submitted her income tax return (ITR12).

2. The notice for income tax assessed for the year ended 28 February 2021 is given as document
“4. ANNEXURE A ITA34 V De Matos 2021”.

3. The notice for income tax assessed for the year ended 28 February 2020 is given as document
“5. ANNEXURE B ITA34 V De Matos 2020”.
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 4. Vanessa’s employer deducted a total amount of R88 000 employees’ tax from her remuneration
and paid it to the South African Revenue Services for the year ended 28 February 2023.
Assume that this amount accrued evenly through the year.

5. Vaness made a provisional tax payment of R2 000 on 31 August 2022.

6. You have already correctly calculated Vanessa’s final taxable income on 28 February 2023. It
amounts to R546 463.

7. Vanessa’s part time business had sales (turnover) of R30 000 for the year of assessment that
ended on 28 February 2023.

8. Vanessa did not have any capital gains or lumps sum payment during the 2023 year of
assessment.

Marks
QUESTION 1 – REQUIRED:
Sub-
Total
total

Calculate the amount that Vanessa de Matos would use for her second
provisional tax estimate (as per as the provisions of the Fourth Schedule to the
Income Tax Act 58 of 1962) for the year that ended on 28 February 2023 by
completing your renamed Excel document called “2. Q1 STUDENT NUMBER
SURNAME INITIAL”. Type in you student number in cell D5.

Do the following correctly based on the information given above :

• Enter the correct actual taxable income for the 2023 year of assessment in cell
G10.
• Answer Yes or No in cell G16.
• Enter the correct date in cell G18. You may also select the cell and click on
the correct date in the given calendar.
• Use an IF formula in cell G20, to state “Yes” or “No” to the question’s answer.
Hint: Use cells G7 and G18 inside your IF formula.
• Enter the correct amount in cell G22.
• Program a formula in cell G32 to show the value of 90% of actual taxable
income as given in cell G10.
• Program cell G34 using the MIN formula to provide the lesser of the basic
amount (G31) and 90% of actual taxable income (G32). 10 10

TOTAL MARKS (10)

Question 2 follows on the next page

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 Marks
QUESTION 2 – REQUIRED: Sub-
Total
total
Complete Vanessa de Matos’s provisional tax return (IRP6) for her second
provisional tax payment (as per as the provisions of the Fourth Schedule to the
Income Tax Act 58 of 1962) for the year that ended on 28 February 2023 by
completing your renamed PDF document called “3. Q2 STUDENT NUMBER
SURNAME INITIAL”.
Do the following correctly based on the information given above :
• Enter the correct amount in the “Turnover” block
• Enter your final answer from Question 1 in the “Estimated taxable income”
block
• Enter the correct amount in the “Employees’ tax for this period (12 months)”
block
• Enter the correct amount in the “Provisional tax paid for 1st period” block
• Enter today’s date in the “Declaration” block.
Note that similar to real-life, the other blocks have already been pre-populated by
SARS.
10 10
TOTAL MARKS (10)

END OF PAPER

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