QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22 000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr. X kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount of the travel allowance to the greatest
QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22 000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr. X kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount of the travel allowance to the greatest
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 22MCQ
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Transcribed Image Text:QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance
charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22
000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr.X kept
an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel
cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount
of the travel allowance to the greatest
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