Andrew aged 35 years, earns a monthly taxable income of R43 000. He has a Medical Aid that covers himself and his two children TABLE 1: 2023 TAX YEAR (1 MARCH 2022-28 FEBRUARY 2023) Taxable Income (R) 0-226 000 226 004-353 100 353 001-488 700 488 701-641 400 641 401-817 600 817 601-1731 600 1 731 601 and above Rebates Rates of tax (R) 18% of taxable income 40 680 + 26% of taxable income above 226 000 73 726+31% of taxable income above 353 100 115 762+36% of taxable income above 488 700 170 734+39% of taxable income above 641 400 239 452+41% of taxable income above 817 600 614 192+45% of taxable income above 1 731 600 Below age 65............. R16 425,00 Age 65 to below 75......R9 000,00 Age 75 and over .R2 997,00 Tax Threshold Below age 65.......... R91 250,00 Age 65 to below 75. ......R141 250,00 Age 75 and over..........R157 900,00 Monthly Medical Aid Tax Credits Principal member First dependent Each additional dependent R347,00 R347,00 R234,00 [Adapted from www.sars.gov.zal Use Table 1 and the information above to answer the questions that follow. CABIO TUULLIN 2.1 Show how the amount of R40 680 in the second bracket was calculated. (2) 2.2 Calculate Andrew's annual taxable income. 2.3 Calculate Andrew's yearly medical aid credits (rebate). (2) (4) 2.4 Calculate Andrew's monthly income tax. (6) 2.5 Andrew claims that if he did not belong to a medical aid, he would pay R1 000 more tax per month. Verify with calculations if his claim is valid. (3) 2.6 Give one reason why people should pay tax. (2) [19]
