IURE 414 - INTRODUCTION TO TAXATION

Tax is paid by...

• Individuals only

• Businesses only

• Individuals and businesses

• Individuals, businesses, and the government

Tax is used by each level of government to...

• Make politicians rich

• Pay for their employees

• Pay for services that some of the population use

• Provide goods and services that are needed by the community

Which is NOT a way through which tax is collected?

• Wages

• Interest earnt from the bank

• Receipts collected

• Commission paid by a job

Individuals under the age of 65 are able to earn up to how much in the 2020 year of assessment without having to pay tax?

• R75 000.00

• R78 150.00

• R79 000.00

• None of the above

The taxable income of an unmarried 35 year old taxpayer who :

• Earns a salary of R300 000 per annum
• Received local dividends of R 4000 for the year
• Earned interest in the amount of R25 000
• Capital gain of R2500

• R331 500.00

• R307 700.00

• R301 200.00

• R303 700.00

Deon (62) & Diana (67) are married in community of porperty. Deon receives a salary of R180 000.00 per annum as well as interest of R65 000.00. Diana has received interest in the amount of R18 000.00. Their taxable income of Deon is

• R197 700

• R221 200

• R187 000

• R173 900

Where the period of assessment is less than a full year, the period is reflected by the total number of days

• True

• False

Section 6 of the Act prescribes certain normal rebates to be deducted from the tax payable by natural persons. The rebates for the 2020 year of assessment is:

• Primary rebate of R14 220 & Secondary rebate of R 21 780

• Primary rebate: R14220, Secondary rebate: R22 014 & Tertiary rebate R24 615

• Primary rebate: R14 067 , Secondary rebate: R22 014 & Tertiary rebate R24 354

• Primary rebate: R14 067 , Secondary rebate: R21 780 & Tertiary rebate R24 615

If a refund is due from SARS, they will

• Wait 21 days before they refund the money

• They will first refund PAYE and then provisional tax

• They will first refund provisional tax and then PAYE

• They will first refund provisional tax and then PAYE, but only after a 21 day period has passed

Marginal rate of tax is

• This rate of tax applies to an additional R2 of taxable income earned. The maximum marginal rate of tax of 45% comes into operation on taxable income in excess of R 1500 001

• This is the rate of tax applying to the total taxable income

• This rate of tax applies to an additional R1 of taxable income earned. The maximum marginal rate of tax of 45% comes into operation on taxable income in excess of R 1500 000

• None of the above