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1. John, a South African resident, purchased a property for R2,000,000 on 1 March 2023. He did not pay any transfer duty at the time of purchase. On 1 October 2024, 18 months after the purchase, John decides to settle the transfer duty. According to the transfer duty rates as of 1 March 2023, John calculates the duty to be R58, 075.00. Given that he is 12 months late beyond the 6-month deadline, and the penalty rate is 10% annually on the purchase price for each month missed after the deadline, what is the total amount John must pay to SARS, including both the transfer duty and the penalty? Choose the correct option. R58, 075.00 as transfer duty and R200,000.00 as a penalty, totalling R258,075.00. R58, 075.00 as transfer duty and R20,000.00 as a penalty, totalling R78,075.00. R58, 075.00 as transfer duty and R240,000.00 as a penalty, totalling R298, 075.00. R58, 075.00 as transfer duty and R300,000.00 as a penalty, totalling R358, 075.00. None of the above

1. John, a South African resident, purchased a property for R2,000,000 on 1 March 2023. He did not pay any transfer duty at the time of purchase. On 1 October 2024, 18 months after the purchase, John decides to settle the transfer duty. According to the transfer duty rates as of 1 March 2023, John calculates the duty to be R58, 075.00. Given that he is 12 months late beyond the 6-month deadline, and the penalty rate is 10% annually on the purchase price for each month missed after the deadline, what is the total amount John must pay to SARS, including both the transfer duty and the penalty? Choose the correct option. R58, 075.00 as transfer duty and R200,000.00 as a penalty, totalling R258,075.00. R58, 075.00 as transfer duty and R20,000.00 as a penalty, totalling R78,075.00. R58, 075.00 as transfer duty and R240,000.00 as a penalty, totalling R298, 075.00. R58, 075.00 as transfer duty and R300,000.00 as a penalty, totalling R358, 075.00. None of the above

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. John, a South African resident, purchased a property for R2,000,000 on 1 March 2023. He did not pay any transfer duty at the time of purchase. On 1 October 2024, 18 months after the purchase, John decides to settle the transfer duty. According to the transfer duty rates as of 1 March 2023, John calculates the duty to be R58, 075.00. Given that he is 12 months late beyond the 6-month deadline, and the penalty rate is 10% annually on the purchase price for each month missed after the deadline, what is the total amount John must pay to SARS, including both the transfer duty and the penalty? Choose the correct option. R58, 075.00 as transfer duty and R200,000.00 as a penalty, totalling R258,075.00. R58, 075.00 as transfer duty and R20,000.00 as a penalty, totalling R78,075.00. R58, 075.00 as transfer duty and R240,000.00 as a penalty, totalling R298, 075.00. R58, 075.00 as transfer duty and R300,000.00 as a penalty, totalling R358, 075.00. None of the above
Transcribed Image Text:1. John, a South African resident, purchased a property for R2,000,000 on 1 March 2023. He did not pay any transfer duty at the time of purchase. On 1 October 2024, 18 months after the purchase, John decides to settle the transfer duty. According to the transfer duty rates as of 1 March 2023, John calculates the duty to be R58, 075.00. Given that he is 12 months late beyond the 6-month deadline, and the penalty rate is 10% annually on the purchase price for each month missed after the deadline, what is the total amount John must pay to SARS, including both the transfer duty and the penalty? Choose the correct option. R58, 075.00 as transfer duty and R200,000.00 as a penalty, totalling R258,075.00. R58, 075.00 as transfer duty and R20,000.00 as a penalty, totalling R78,075.00. R58, 075.00 as transfer duty and R240,000.00 as a penalty, totalling R298, 075.00. R58, 075.00 as transfer duty and R300,000.00 as a penalty, totalling R358, 075.00. None of the above
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