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HTAX230-1-Week1-Unit1-Chapters 1&2

This document provides instructions for a teaching and learning activity for a taxation of individuals module. [1] It announces additional optional materials and activities for students to work through each week to better understand the weekly course content. [2] Activity 1 asks students questions about terminology related to tax rates, calculating effective interest rates based on taxable income, determining tax liability and statutory tax rate based on a tax table, identifying the type of tax paid on dividends, and distinguishing between direct and indirect taxes with examples. [3] The purpose is to help students gain a deeper understanding of the topics covered in the first two chapters of the course materials.

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78 views3 pages

HTAX230-1-Week1-Unit1-Chapters 1&2

This document provides instructions for a teaching and learning activity for a taxation of individuals module. [1] It announces additional optional materials and activities for students to work through each week to better understand the weekly course content. [2] Activity 1 asks students questions about terminology related to tax rates, calculating effective interest rates based on taxable income, determining tax liability and statutory tax rate based on a tax table, identifying the type of tax paid on dividends, and distinguishing between direct and indirect taxes with examples. [3] The purpose is to help students gain a deeper understanding of the topics covered in the first two chapters of the course materials.

Uploaded by

kashmeerpunwasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Teaching and Learning Activity

Module: Taxation of Individuals (HTAX230-1)


Week number (Date): 1
Unit covered: Unit 1 (Chapter 1 & 2)

Instructions:
To enrich your learning experience at Boston even further, and to ensure that you are exposed to a
variety of resources in this module, announcements will be posted every week containing additional
materials or activities for you to work through.

It is important to note that these activities are neither compulsory nor weighted, but that it will be to your
advantage to participate. The purpose of the activities is to help you better understand the content of
your weekly unit/s of study, and it will assist in creating insight and deeper meaning.

Activity 1 is based on Unit 1 (Chapter 1 & 2) of the prescribed courseware for this module.

The suggested solutions for this Activity will be posted by Saturday.

Question 1

1.1) When referring to taxation certain terminology is important in understanding tax rates. Explain
what you understand under the following terms:
• Marginal tax rate
• Statutory tax rate
• Effective tax rate
1 HTAX230-1-AP-W1-TL-15022024
1.2) Andy earned interest income of R30 000 for a particular year of assessment. Assume the
applicable tax rate is 35% and that R25 000 of the interest is not taxable. Calculate Andy’s
effective interest rate.

1.3) During the 2024 tax year Peter generated a total profit before tax of R650 800 and the amount
subject to tax is determined at R620 700.
Assume that the following tax rate table applies:

2024 tax year (1 March 2023 – 29 February 2024)


Taxable Income (R) Rates of tax (R)
1 – 237 100 18% of taxable income
237 101 – 370 500 42 678 + 26% of taxable income above 237 100
370 501 – 512 800 77 362 + 31% of taxable income above 370 500
512 801– 673 000 121 475 + 36% of taxable income above 512 800
673 001 – 857 900 179 147 + 39% of taxable income above 673 000
857 901 – 1 817 000 251 258 + 41% of taxable income above 857 900
1 817 001 and above 644 489 + 45% of taxable income above 1 817 000

Calculate/determine the following:


• Peter’s tax liability
• Peter’s statutory tax rate

1.4) You own shares in Sun Corp Ltd and received a dividend of R4 500 (after dividends tax)
during the year. Identify and discuss the type of tax paid on dividends.

1.5) Identify the difference between direct and indirect taxes and give two examples of direct and
two examples of indirect taxes.

2 HTAX230-1-AP-W1-TL-15022024
Competency Framework Reference:
E1.3 Application of tax legislation to calculate tax obligation
a)
Analyse the taxpayer’s tax profile.

c) Apply the relevant law to the facts, determine the tax position and compute the tax
payable (VAT or normal tax) for individuals and companies.

3 HTAX230-1-AP-W1-TL-15022024

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