ACC202(AMADI)_JUL_2019.PDF - MIDLANDS STATE UNIVERSITY...

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MIDLANDS STATE UNIVERSITY FACULTY OF COMMERCE DEPARTMENT OF ACCOUNTING TAX LAW a PRACTICE A : ACC 202(AMADI) SPECIAL EXAMINATION JULY 2019 DURATION:3 HOURS 100 MARKS INSTRUCTIONS 1. Attempt all Questions in Section A & any two from Section B 2. Begin an answer to a new question on a new page. 3. In order to earn marks, show all your workings
The following are the Tax Values and Tax rates applicable Rental category Floor area Area A Taxable benefit Per month Area B Taxable benefit Per month Area C Taxable benefit Per month Prime location 3-5 bedrooms 2-3 bathrooms Double garage Servant quarters Secure perimeter 1 500 sq.m and above lot 250 sq.m and above E 4 607 E 3 915 E 2 740 As above, but smaller 200 sq.m and above 4 145 3 524 2 465 3 bedrooms 2 bathrooms a garage servants quarters secure perimeter 700 sq.m and above lot 150sq.m and above 3 686 3 133 2 193 Lesser than prime location 3 bedrooms 1-2 bathrooms 700sq.m and above lot 120sq.m and above 3 190 2 710 1 899 2-3 bedrooms 1 bathroom or shower 100 sq.m and above 2 393 2 033 1 422 2-3 bedrooms 1 bathroom or shower 70-100sq.m 1 612 1 370 960 2-3 bedrooms 1 bathroom or shower 40-70sq.m 1 330 1 129 790 1 bedroom 70sq.m and above 910 773 542 1 bedroom Under 70sq.m 761 648 452 Bedsitters Under 7Osq. m 531 452 317 Quarters Under 70sq.m _ ..... 213 180 110 7
In this schedule, the locations are designated in categories A, B, C, and are detailed as follows: Area A:is accommodation or housing situated in the residential areas of Mbabane Municipal area, Waterford, Pine Valley, Coates Valley, Extension 6, Madonsa Township, Thomasdale and within ten kilometers from the old Mbabane/Manzini road. Area B: is accommodation or housing situated in the residential areas of Manzini and surrounds; except Coates Valley, Extension 6, Madonsa Township and Thomasdale. Area C: is accommodation or housing situated in the major agricultural and industrial sectors and other towns. 2. Employee using personal vehicle on employer's business (1) Where an employee uses a personal vehicle on employer's business, the annual value of benefits attributable to such an employee for use of the vehicle for private purposes will be determined in accordance with the following formula — A = B — (C x D) E Where, A. is the amount to be included in taxable income; B. is the car allowances received (car allowance defined as all cash allowances plus market value of any free benefit i.e. free fuel); C. is the actual expenditure on fixed and running costs (net of any recoupments); or D. is the business mileage as recorded in a log book or number record; or the deemed business mileage of 6 000 kilometres where accurate records are not kept; E. is the total mileage; or deemed total mileage of 24 000 kilometres where accurate records are not kept. is the deemed fixed and running costs, where accurate records are not kept;

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