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IURE 414 - INTRODUCTION TO TAXATION

Total questions: 10

Worksheet time: 14mins

Name
Class
Date
1.

Tax is paid by...

a)

Individuals only

b)

Businesses only

c)

Individuals and businesses

d)

Individuals, businesses, and the government

2.

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

a)

Make politicians rich

b)

Pay for their employees

c)

Pay for services that some of the population use

d)

Provide goods and services that are needed by the community

3.

Which is NOT a way through which tax is collected?

a)

Wages

b)

Interest earnt from the bank

c)

Receipts collected

d)

Commission paid by a job

4.

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?

a)

R75 000.00

b)

R78 150.00

c)

R79 000.00

d)

None of the above

5.

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
a)

R331 500.00

b)

R307 700.00

c)

R301 200.00

d)

R303 700.00

6.

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

a)

R197 700

b)

R221 200

c)

R187 000

d)

R173 900

7.

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

a)

True

b)

False

8.

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:

a)

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

b)

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

c)

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

d)

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

9.

If a refund is due from SARS, they will

a)

Wait 21 days before they refund the money

b)

They will first refund PAYE and then provisional tax

c)

They will first refund provisional tax and then PAYE

d)

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

10.

Marginal rate of tax is

a)

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

b)

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

c)

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

d)

None of the above