Taxation Grade 12 Daily Assessment Tasks TAHXATION

GRADE 12 Mathematical
Literacy
TAXATION
Examination Type
Daily Assessment Tasks
(Homeworks & Classworks)
15 ACTIVITIES
 VAT & UIF (3)

 PAYE (12)
Free State Department of Education: June 2020

Compiled and arranged by: Martin Tshabalala in collaboration with FS Subject Advisors
TOPIC: MEASUREMENT
Section Level 1: Knowing Level 2: Applying Level 3: Applying Level 4:
routine multi-step Reasoning and
procedures in procedures in a reflecting
familiar contexts variety of contexts
Identify the name of Read appropriate Use formulae Compare income
tax values from
the employee listed given income tax provided on income tax tables over
on a pay slip and deduction tables. tax bracket tables to different financial
the month for which calculate an periods and
the pay slip has Identify the income individual’s annual explain how an
tax bracket into individual’s tax
been issued. which an individual and monthly income may have changed
falls based on a tax. from one period to
Identify the given monthly another.
employee’s monthly
salary. and/or annual Investigate through Investigate the
income. effect that an
calculation how the
State how the increase in salary
tax rebate value is has on increased
Taxation employees determined. tax payments.
“taxable income”
has been Calculate compound Analyse graphs
determined by growth/decline showing changes
referring to the in income tax over
salary and different time
deduction values periods and
shown on the explain differences
payslip.
Define the terms

“gross pay”, “net
pay”, “deductions”,
and “taxable
income” shown on a
payslip.
WEIGHTINGS AND SKILLS
TOPIC TOPIC WEIGHT
Interpreting and communicating No weighting is provided
answers and calculations for these topics.
Numbers and calculations with numbers Rather, they will be
Basic Skills Topics
Patterns, relationships and assessed in an integrated
representations way in the Application
Topics.
Finance 35% (±5%)
Measurement 20% (±5%)
Maps, plans and other representations of 15% (±5%)
Application Topics
the physical world
Data Handling 25% (±5%)
Probability Minimum of 5%
PAPER 1 PAPER 2
Intention “Basic skills” paper → assesses “Applications” paper →
proficiency of content and/or skills assesses ability to use both
mathematical and non-
mathematical
techniques/considerations to
explore familiar and unfamiliar
contexts.
Structure and scope 5 questions. 4 or 5 questions.
of content and/or First four questions deal with Each question deals with
skills contexts relating to each of these contexts drawing integrated
topics: content from across all of these
• Finance topics:
• Measurement • Finance
• Maps, plans and other • Measurement
representations of the physical • Maps, plans and other
world representations of the
• Data handling physical world
• Fifth question integrates • Data handling
content from across all of these
topics. Probability will be examined
in the context of one or more
Probability will be examined in of the other questions.
the context or one or more of the The “Basic Skills” topics
other questions. Numbers and operations
The “Basic Skills” topics Numbers with numbers and Patterns,
and operations with numbers and relationships and
Patterns, relationships and representations will be
representations will be integrated integrated throughout all other
throughout all other questions. questions.
Each question can contain more Each question can contain

than one context. more than one context.
Level 1 60% (±5%) --
Taxonomy Level 2 35% (±5%) 25% (±5%)
Levels Level 3 5% (minimum) 35% (±5%)
Level 4 -- 40% (±5%)
ACTIVITY 1 (11 Marks)
Mr Jacobs wants to buy a new luggage bag for his Kruger National Park holiday.
He found the two advertisements below while searching the internet.
OCTOLITE CARRY ON AMERICAN TOURISTER
Selling price: Selling price:

R2 499 (15% VAT included) R1 999 (15% VAT excluded)
Source: GAUTENG 2019 P1 PREP
Study the two options above and answer the questions that follow.
1.1 Write out the acronym VAT in full. (2)
1.2 Calculate the total VAT charged on the American tourister. (2)
1.3 Calculate the price of Octolite Carry On. (3)
1.4 Determine the number of wheels on the American Tourister. (2)
1.5 Determine the total VAT for both luggage bags. (2)
1
Taxation: Daily Assessment Tasks (FS)
Bradley Wood works f or CHS Network Installations as a technician. ANNEXURE A
shows Bradley’s payslip for the period 01 June 2019 to 30 June 2019.
Bradley Wood’s Salary Slip

CHS NETWORK INSTALLATIONS
No. 487 John Ross Highway Contact No: 035 474 0301
Eshowe Fax No: 035 474 0300
3815 Email: chsinst@chs.co.za
Name of Employee ID Tax Reference

Employee Number
Bradley Wood 8407115428188 1592399017
Employee Number Department Salary Period

Designation
Technician T10153 Information Technology 01/06/2019 –
30/06/2019
Earnings Deductions
Basic Salary R25 900 P.A.Y.E R2 540,52
Travel Allowance R 4 700 UIF R 148,72
Housing R 1 200 Pension Fund (7,5% of B
Allowance Basic Salary
Medical Aid (5 R3 876,59
dependants)
Gross A Total Deductions
NETT PAY C
Source: KZN GRADE 11 SEPT 2019
Use the information above to answer the following questions.
2.1 Explain the term “net pay” on the payslip? (2)
2.2 Calculate the value of A. (2)
2.3 Calculate the value of B. (2)
2.4 Calculate the value of C. (2)
2.5 Explain why the UIF amount is R148,72 (2)
2
R4 558 is a total annual UIF contribution of one of the employee at Keitumetse Company
who is registered for UIF purposes.
One UIF conditions: Employer and employee each contributes 1% of monthly salary
Source:FS GRADE 11 TEST SEPT 2019

3.1 What does the abbreviation UIF stand for? (2)
3.2 Determine the monthly salary of an employee working at Keitumetse Company

whose total annual UIF contribution is R4 558. (5)
3.3 Give one condition to benefit (i.e. circumstances that enable a person financial
relief) from contributing to the UIF. (2)
3.4 Pizza shop purchased 11 pizza bags from Rammone.
If One bag cost R45,95 price including VAT at 15%.
3.4.1 Calculate the price excluding VAT for 11 bags purchased. (4)
3
The South African Sports Confederation and Olympic Committee (SASCOC) rewarded
Team SA for the 10 medals won at the Rio Olympics. Team SA won 2 gold medals, 6
silver medals and 2 bronze medals.
A gold medalist earned R500 000, a silver medalist earned R250 000 and a bronze medalist
earned R100 000.
If a South African athlete had won a gold medal at the Rio Olympics, his/her winnings
would have been divided between the athlete and his/her coach in an 80 : 20 ratio.
RATES OF TAX FOR INDIVIDUALS

Taxable Income (R) Rates of tax (R)
0 – 188 000 18% of taxable income
188 001 – 293 600 33 840 + 26% of taxable income above 188 000
Source: IEB P1 2018 NOV

4.1 How much money would a coach have earned if the athlete had won a gold (2)
medal?
4.2 If Wade van Niekerk and Caster Semenya had won one gold medal each, how (3)
much money would they have earned collectively from SASCOC?
4.3 Use the table below to calculate how much tax Wade van Niekerk would have (5)
paid on the money he earned from his gold medal.
4
Mr Rasutha is 65 years old. He is still working and earns a taxable income of R347 171 per
annum for the year 2018/2019. He contributes to a medical aid fund for himself and his
wife.
INDIVIDUAL INCOME TAX OF TAX ENDING 28 FEBRUARY 2019
Taxable Income (R) Rates of tax (R)

0–195 850 18% of each Rand
195 851–305 850 35 253 + 26% of the amount above 195 850
708 311–1 500 000 207 448 + 41% of the amount above 708 310
1 500 001 and above 532 041 + 45% of the amount above 1 500 000
REBATES
Primary rebate R14 067
Secondary rebate – 65 years and older R7 713

Tertiary rebate – 75 years and older R2 574
RELIEF FOR MEDICAL EXPENSES
MEDICAL SCHEME CONTRIBUTIONS REBATE PER MONTH
Tax payer R310
Tax payer + first dependent R620

Each additional dependent R209
Source: FS SEPT 2019 P2

Use the information and table above to answer the following questions.
5.1 Calculate Mr Rasutha's monthly salary after the deductions. (8)
5.2 Why is it necessary for citizens to pay tax? Give TWO reasons. (4)
5
SARS published the table below for the tax year ending on 28 February 2018.
Rates applicable to individuals ( tax year 2017/2018)

Taxable Income (R) Rate of Tax (R)
0–189 880 18% of taxable income
189 881–296 540 34 178 + 26% of taxable income above 189 880
708 311–1 500 000 209 032 + 41% of taxable income above 708 310
1 500 001 and above 533 625 + 45% of taxable income above 1 500 000
Tax Rebates
• Primary Rebate……………………………… R13 635
• Secondary–Persons of 65 and older ……….. R7 479
• Tertiary–Persons of 75 and older…………… R2 493
Tax thresholds
The tax thresholds, at which liability for normal tax commences, are:
• Persons under 65……………………………… R75 750

• Persons of 65–74 years ………………………. R117 300
• Persons of 75 years and older………………… R131 150
MTC ( Medical Tax Credits)

The monthly medical tax credits are:
• R303 for the main member

• R303 for the first dependant and
• R204 for each additional dependant
Source:FS GRADE 12 JUNE 2017 P1

6.1 What does the abbreviation SARS stand for? (2)
6.2 Define the term Tax thresholds, as used in the context. (2)
6.3 Nomsa is 30 years and earns a gross salary of R71 750 per annum. Determine (2)
the amount of tax that Nomsa must pay per annum.
6.4 Thabo is 40 years old and earns a gross salary of R30 000 per month. He
contributes R2 250 per month to a pension fund. His full pension fund is tax-
deductible. He is a member of an approved medical scheme and he pays
contributions for himself and 2 children.
6.4.1 His annual taxable income (4)
6.4.2 The amount of tax he must pay per annum (7)
6
Mr Bush is a 54 year old employee at the Gauteng Department of Education. He contributes
7,5% of his monthly basic salary towards the GEPF (Government Employee Pension Fund).
He receives a bonus that is equivalent to his monthly basic salary. The bonus is tax
deductible. He pays medical aid for his 3 children and his wife. He also receives a housing
allowance that is tax deductible.
RATES OF TAX FOR INDIVIDUALS

2017 tax year (1 March 2016 – 28 February 2017)
Taxable income (R) Rates of tax
188 001 – 293 600 R33 840 + 26% of taxable income above R188 000
701 301 and above R206 964 + 41% of taxable income above R701 300
Tax Thresholds
Persons Under 65 R75 000
Persons 65 an older R116 150
Persons 75 and older R129 850
Tax Rebate
Primary R13 500
Secondary (65 and older) R7 407
Tertiary (75 and older) R2 466
Medical Tax Credit Rates Cost per month (R)
For the taxpayer who paid the medical scheme R286
contributions
For the first dependant R286
For each additional dependant R192
Mr P.T. Bush’s salary advice

Initial and Surname Job title Organisation NOTCH
P.T. Bush Head of department K5 Gauteng Education 315 714,96
Pay date Deposit institution Account number Branch

20160630 Standard bank XXXXXXXXXXXX1325 52850
Number of medical Gross salary Deductions Nett salary

dependants
A=1 C=3 53 819,16 B C
EARNINGS DEDUCTIONS
Description Amount in Rand Description Amount in Rand
Basic salary 26 309,58 GEPF A
Bonus 26 309,58 PAYE 4 561,97
Medical aid contribution by
Housing allowance 1 200,00 3 222,00
member
Sanlam 86,91
Naptosa 70,00
SACE 6,06
Source: GAUTENG 2017 P2 PREP

7
Use the salary advice and the tax table ABOVE to answer the following questions.
7.1 Determine the values of A, B and C on his salary advice. (6)
7.2 Use calculations to show how the value of R61 296 on the tax table for the
third tax rate, was derived. (3)
7.3 Mr Bush complained, that even though his housing allowance is taxable, he
still believes he is overtaxed on a monthly basis. Use calculations to verify
his statement.
Taxable Income = Annual Gross Salary - Annual Pension Fund

contribution
Tax Payable = Annual Tax Payable - Annual Medical Tax Credits - (11)
Rebate
8
Peter who is 52 year old is an employee at a Research Company. He earned an annual
income of R338 000, including bonus which is equivalent to the monthly income for the
2018/2019 tax year.
 He contributes 7,5% of his basic salary to the pension fund.

 He is also donating R46 800 per annum to the registered charity organisation, the
donation is tax deductible.
 He contributes R4 550 to the medical aid monthly, for himself and his 2 children.
TAX TABLE FOR INDIVIDUALS:

FOR THE TAX YEAR: MARCH 2018 – FEBRUARY 2019
Taxable income in ZAR Tax rate in ZAR
423 301 – 555 600 100 263 + 36% of of taxable income above 423 300
555 601 – 708 310 147 891 + 39% of of taxable income above 555 600
708 311 – 1 500 000 207 448 + 41% of taxable income above 708 310
Tax rebates Amount in ZAR

Primary (age below 65) R14 067
Secondary (age 65 and over) R7 713
Tertiary (age 75 and over) R2 574
Monthly medical credits in ZAR
Main member R310
First dependant R310
Each additional dependant R209

Source:GAUTENG P2 PREP 2019
Use the information and TABLE above to answer the following questions.
8.1 Show, using calculations, that his taxable income is R267 800,00. (5)
8.2 Determine his annual medical credits. (3)
8.3 Hence, calculate his annual income tax. (5)
9
TABLE 1 below shows the income tax rates for the 2015/2016 tax year.
TABLE 1: INCOME TAX RATES FOR THE 2015/2016 TAX YEAR

TAXABLE INCOME TAX RATE
R0–R181 900 18% of each R1
R181 901–R284 100 R32 742 + 26% of the amount above R181 900
R701 301 and above R208 587 + 41% of the amount above R701 300
TAX REBATE
Primary rebate R13 257
Secondary rebate (Age 65 to below 75) R7 407
Tertiary rebate (Age 75 and older) R2 466
Source: DBE May-June 2016 P2

Use the information TABLE above to answer the following questions.
9.1 Calculate Mr Kader's monthly annuity after tax (9)
9.2 Motivate, with calculations, whether Mr Kader should retire. (4)
ACTIVITY 10 ( 10 Marks)
The owner of the boat has been hosting sunset cruises for two full years now. In his first
year of business he had a taxable turnover (taxable income) of R275 000 and in his second
year he had a taxable turnover of R740 000.
TAX TABLE APPLICABLE FOR TURNOVER OF MICRO BUSINESSES

Taxable Income (R) Rate of Tax (R)
R0 – R335 000 0% of taxable turnover
R335 001 – R500 000 1% of the taxable turnover above R335 000
R500 001 – R750 000 R1 650 + 2% of the taxable turnover above R500 000
R750 001 – R1 000 000 R6 650 + 3% of the taxable turnover above R750 000
Source: IEB P2 NOV2016
10.1 By making use of the TABLE ABOVE, calculate, showing all working, (10)
what percentage of his combined turnover he was left with once he had
paid tax for the first two years of his business.
10
TABLE 1 below shows the tax rates for individuals for the 2018/2019 tax year.
John (68 years old) received a taxable income of R2 045 364 for the 2018/2019 tax year.
He paid a monthly contribution towards a medical scheme for himself and his wife.
TAX RATES FOR INDIVIDUALS

2018/2019 tax year (1 March 2018–28 February 2019)
Taxable income Rates of tax
0–195 850 18% of taxable income

708 311– 1 500 000 207 448 + 41% of taxable income above 708 310
Tax Rebate 2019

Primary R14 067
Secondary (65 and older) R7 713
Tertiary (75 and older) R2 574
Medical Scheme Tax Rebates

Per Month (R) 2019
For the tax payer who paid medical scheme contributions R310
For the first dependant R310
For each additional dependant R209
Source:DBE P2 NOV 2019

11.1 Calculate John's total medical scheme tax rebate for the year. (3)
11.2 Hence, calculate the amount of income tax he had to pay for the 2018/2019
tax year. (8)
11
Kevin is a 45-year-old man who works for a tourism company. He earns a gross salary of
R28 754,50 per month and a 13th cheque at the end of the company's financial year. The
following are deducted from his salary on a monthly basis: 7,5% of his salary towards his
pension R1 434,70 for his medical aid
The table below shows the tax rates for individuals for the year of assessment ending
28/02/2013
Tax Taxable Income

Rate of Tax (in rand)
Bracket (in rand)
A 0 – 160 000 18% of taxable income
B 160 001 – 250 000 28 800 + 25% of taxable income above 160 000
C 250 001 – 346 000 51 300 + 30% of taxable income above 250 000
D 346 001 – 484 000 80 100 + 35% of taxable income above 346 000
E 484 001 – 617 000 128 400 + 38% of taxable income above 484 000
F 617 000 – and above 178 940 + 40% of taxable income above 617 000
Rebates
Primary R11 440
Secondary (65 years old and above) R 6 390
Tertiary (75 years old and above) R 2 130
Source:DBE P2 EXEMPLAR 2014

Use the above information to answer the following questions.
12.1 Calculate Kevin's monthly contribution towards his pension. (3)
12.2 Calculate Kevin's annual medical-aid contribution. (2)
12.3 Kevin's taxable income for the year of assessment ending 28/02/2013 was
R330 713,02.
Describe how Kevin's taxable income was calculated. (5)
12.4 Determine Kevin’s tax bracket. Write down only the letter (A-F)
corresponding to Kevin’s taxable income. (2)
(2)
12.5 Write down Kevin’s rebate
12
TABLE 1: Tax table for 2015/2016

R0 – R181 900 18% of each rand
R181 901 – R284 100 R32 742 + 26% of amount above R181 900
R701 301 and above R32 742 + 41% of amount above R673 100
Rebates
Persons under 65 years R13 257
Persons aged 65 to 75 years R 7 407
Persons older than 75 years R 2 466
Source:MPUM P2 Prep 2016

Use the above TABLE 1 to answer the following questions.
13.1 Show how the value of R59 314 in tax bracket 3 was calculated. (4)
13.2 During August 2014 Miss Gumede’s monthly salary of R29 915 was
increased by 7,5%, and she had to pay a monthly tax amount of 6 667, 90.
Verify by calculation if the tax amount is correct. (7)
13
During the 2014/2015 tax year the 48-year old manager earned an average net taxable
monthly salary of R5 500, 00. His monthly payslip reflects a deduction of R70, 50 for
personal income tax.
The personal income tax rates for the 2014/2015 tax year are set out in the tax table below.
TABLE 1: Tax table for 2014/2015

R0 – R74 550 18% of taxable income
R74 551– R272 700 R31 419 + 25% of amount above R174 550
R673 101 and above R195 212 + 40% of amount above R673 100
Rebates
Persons under 65 years R12 726
Persons aged 65 to 75 years R 7 110
Persons older than 75 years R 2 367
Source:DBE June-July 2015 Nov P2

Use the above TABLE 1 above to answer the following questions.
Verify whether his monthly personal income tax deduction, as shown on his
14.1
payslip is correct. Show all calculations. (8)
___________________________________________________________________________
THE END!!
14

Taxation Grade 12 Daily Assessment Tasks TAHXATION

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GRADE 12 Mathematical

 VAT & UIF (3)

Free State Department of Education: June 2020

Define the terms

Each question can contain more Each question can contain

OCTOLITE CARRY ON AMERICAN TOURISTER

Selling price: Selling price:

Source: GAUTENG 2019 P1 PREP

1.1 Write out the acronym VAT in full. (2)

1.3 Calculate the price of Octolite Carry On. (3)

1.4 Determine the number of wheels on the American Tourister. (2)

Bradley Wood’s Salary Slip

Eshowe Fax No: 035 474 0300

3815 Email: chsinst@chs.co.za

Name of Employee ID Tax Reference

Employee Number Department Salary Period

Gross A Total Deductions

Use the information above to answer the following questions.

2.1 Explain the term “net pay” on the payslip? (2)

2.2 Calculate the value of A. (2)

2.3 Calculate the value of B. (2)

2.4 Calculate the value of C. (2)

2.5 Explain why the UIF amount is R148,72 (2)

Source:FS GRADE 11 TEST SEPT 2019

3.1 What does the abbreviation UIF stand for? (2)

3.2 Determine the monthly salary of an employee working at Keitumetse Company

3.4 Pizza shop purchased 11 pizza bags from Rammone.

If One bag cost R45,95 price including VAT at 15%.

RATES OF TAX FOR INDIVIDUALS

Source: IEB P1 2018 NOV

INDIVIDUAL INCOME TAX OF TAX ENDING 28 FEBRUARY 2019

Taxable Income (R) Rates of tax (R)

Primary rebate R14 067

Secondary rebate – 65 years and older R7 713

RELIEF FOR MEDICAL EXPENSES

MEDICAL SCHEME CONTRIBUTIONS REBATE PER MONTH

Tax payer R310

Tax payer + first dependent R620

Source: FS SEPT 2019 P2

5.1 Calculate Mr Rasutha's monthly salary after the deductions. (8)

Rates applicable to individuals ( tax year 2017/2018)

• Persons under 65……………………………… R75 750

MTC ( Medical Tax Credits)

• R303 for the main member

Source:FS GRADE 12 JUNE 2017 P1

6.1 What does the abbreviation SARS stand for? (2)

6.4.1 His annual taxable income (4)

6.4.2 The amount of tax he must pay per annum (7)

RATES OF TAX FOR INDIVIDUALS

Mr P.T. Bush’s salary advice

Pay date Deposit institution Account number Branch

Number of medical Gross salary Deductions Nett salary

Source: GAUTENG 2017 P2 PREP

7.1 Determine the values of A, B and C on his salary advice. (6)

Taxable Income = Annual Gross Salary - Annual Pension Fund

 He contributes 7,5% of his basic salary to the pension fund.

TAX TABLE FOR INDIVIDUALS:

Tax rebates Amount in ZAR

Monthly medical credits in ZAR

Main member R310

First dependant R310

Each additional dependant R209

8.2 Determine his annual medical credits. (3)