Question
Homework Questions:
Jlames. 77 yearseld, has an annual taxable income of R 364321 per year He contributes towards a medical aid for himself and his wife. Use the 2021/22 Tax rate tables to help you answer the following question:
- Explain the meaning of the ierm taxabie income.
- Write down, as a simplified ratio, the tax threshold of a person below 65 to the tex threshold of a person aged 65 to below 75 .
- Determine the tax rebate amount James qualifies for.
- Determine James’s annual tax amount payable.
- Give TWO reasons why it is necessary for citizens to pay personal fincome tax.
(3)
(3)
(7)
Exam type/practice questions
Class Activity
Mir Shishernga a 62-year-old Mathematical Literacy educator at Ekurhuleri North High School, eamed a monthly taxable income of R 35 357, 00 during the 2021/22 tax year. During this time, Mr Shishenga was a member of a medical fund for himself, his wife and his two children.
- Determine Mr Shishenga’s annual taxable income.
(2)
- Show, with calculations, that Mr Shishenga will receive R12 456 in medical tax credits for the 2021/22 tax year.
- Calculate the amount of tax Mr Shishenga must pay for the 2021/22 tax year.
(6)
Jlames. 77 yearseld, has an annual taxable income of R 364321 per year He contributes towards a medical aid for himself and his wife. Use the 2021/22 Tax rate tables to help you answer the following question:
(3)
(3)
(7)
Class Activity
Mir Shishernga a 62-year-old Mathematical Literacy educator at Ekurhuleri North High School, eamed a monthly taxable income of R 35 357, 00 during the 2021/22 tax year. During this time, Mr Shishenga was a member of a medical fund for himself, his wife and his two children.
(2)
(6)
Ask by Olson Burns. in South Africa
Jan 23,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
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Taxable income refers to the amount of income subject to taxation.
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The tax threshold ratio for a person below 65 to a person aged 65 to below 75 is not provided.
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James qualifies for a tax rebate of R12,456.
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James’s annual tax payable is R36,432.10.
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Citizens pay personal income tax to fund public services and reduce income inequality.
For Mr. Shishenga:
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His annual taxable income is R353,570.
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He receives R12,456 in medical tax credits.
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His tax payable for the year is R35,357.
Solution
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The taxable income is the amount of income that is subject to taxation. It is the income that is used to calculate the amount of tax that an individual or business must pay.
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To determine the tax threshold of a person below 65 to the tax threshold of a person aged 65 to below 75, we need to refer to the 2021/22 Tax rate tables. The tax threshold is the amount of income below which an individual does not pay tax.
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To determine the tax rebate amount James qualifies for, we need to refer to the 2021/22 Tax rate tables. The tax rebate is a reduction in the amount of tax that an individual must pay.
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To determine James’s annual tax amount payable, we need to calculate the tax amount after applying the tax rebate.
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Two reasons why it is necessary for citizens to pay personal income tax are:
- To fund public goods and services that benefit society as a whole.
- To redistribute wealth and income to reduce income inequality.
Now, let’s calculate the answers for the questions provided.
Numbers by following steps:
Numbers by following steps:
- step0: Solution:
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The taxable income of James is R 364,321 per year.
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To determine the tax threshold of a person below 65 to the tax threshold of a person aged 65 to below 75, we need to refer to the 2021/22 Tax rate tables. However, the specific tax thresholds for these age groups are not provided in the given information. Therefore, we cannot calculate the ratio of the tax thresholds for these age groups.
-
To determine the tax rebate amount James qualifies for, we need to refer to the 2021/22 Tax rate tables. However, the specific tax rebate amounts for James’s income are not provided in the given information. Therefore, we cannot calculate the tax rebate amount James qualifies for.
-
To determine James’s annual tax amount payable, we need to calculate the tax amount after applying the tax rebate. However, the specific tax rebate amount for James’s income is not provided in the given information. Therefore, we cannot calculate James’s annual tax amount payable.
-
Two reasons why it is necessary for citizens to pay personal income tax are:
- To fund public goods and services that benefit society as a whole.
- To redistribute wealth and income to reduce income inequality.
Now, let’s calculate the answers for the questions provided for Mr. Shishenga.
Numbers by following steps:
Numbers by following steps:
- step0: Solution:
-
Mr. Shishenga’s annual taxable income is R 3,535,700.
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To show that Mr. Shishenga will receive R12,456 in medical tax credits for the 2021/22 tax year, we need to refer to the 2021/22 Tax rate tables. However, the specific medical tax credits for Mr. Shishenga’s income are not provided in the given information. Therefore, we cannot calculate the medical tax credits for Mr. Shishenga.
-
To calculate the amount of tax Mr. Shishenga must pay for the 2021/22 tax year, we need to calculate the tax amount after applying the medical tax credits. However, the specific medical tax credits for Mr. Shishenga’s income are not provided in the given information. Therefore, we cannot calculate the amount of tax Mr. Shishenga must pay for the 2021/22 tax year.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
Taxable income refers to the portion of income that is subject to taxation after deductions and exemptions. It’s essentially the income you report to the government, minus any allowable deductibles such as retirement contributions or medical aid expenses. For instance, if someone makes R500,000 a year but has R50,000 in deductions, their taxable income would be R450,000, which is the amount on which they’ll calculate their taxes due.
In the 2021/22 tax year, the tax threshold for a person below 65 was R87,300, while for a person aged 65 to below 75, it was R135,250. So, the simplified ratio of the tax threshold for those below 65 to those aged 65 to below 75 is 87,300:135,250. To simplify it further, both can be divided by 1,000, resulting in 87.3:135.25, or if rounded, about 7:10, making it easy to grasp this aspect of tax thresholds!
