Read the following information and answer questions that follow. Brian Ndlovu is employed as a manager in Gaborone. During the year ended 30 June 2020, he had the following incomes and expenditures: Amount (P) Salary 1,40,000 Performance related award 50,000 Entertainment allowance 60,000 Barclays Bank Interest 40,000 Commission 70,000 Interest from BBS Subscription shares 10,000 Other Investment Income 20,000 Medical aid contributions from the employer 5,000 Compensation for injury at work 6,000 Rental Income 1,60,000 Expenses incurred during the year: Approved Pension contributions 10,000 Contributions to approved retirement annuity fund 15,000 Annual subscriptions to ACCA 1,500 Contributions to an unapproved fund 20,000 Contributions to life assurance policy 15,000 P.A.Y.E. deducted 40,000 Additional Information: (1) During the year, the company paid a total of P10 000 to Brian for private telephone and electricity bills (2) Brian had the use of a company car that cost P100 000 for which he paid for his own fuel in the current financial year. (3) On 1st January 2020, the employer loaned Brian an interest free loan of P100 000. The prime interest rate is 15%. (4) Brian lives rent-free in a house that is owned by his employer. He moved into the house on 1 March 2015. The ratable value of the house has been determined to be P120 000.
Read the following information and answer questions that follow.
Brian Ndlovu is employed as a manager in Gaborone. During the year ended 30 June 2020, he
had the following incomes and expenditures:
Amount (P)
Salary 1,40,000
Performance related award 50,000
Entertainment allowance 60,000
Barclays Bank Interest 40,000
Commission 70,000
Interest from BBS Subscription shares 10,000
Other Investment Income 20,000
Medical aid contributions from the employer 5,000
Compensation for injury at work 6,000
Rental Income 1,60,000
Expenses incurred during the year:
Approved Pension contributions 10,000
Contributions to approved retirement annuity fund 15,000
Annual subscriptions to ACCA 1,500
Contributions to an unapproved fund 20,000
Contributions to life assurance policy 15,000
P.A.Y.E. deducted 40,000
Additional Information:
(1) During the year, the company paid a total of P10 000 to Brian for private telephone and
electricity bills
(2) Brian had the use of a company car that cost P100 000 for which he paid for his own fuel
in the current financial year.
(3) On 1st January 2020, the employer loaned Brian an interest free loan of P100 000. The
prime interest rate is 15%.
(4) Brian lives rent-free in a house that is owned by his employer. He moved into the house
on 1 March 2015. The ratable value of the house has been determined to be P120 000.
(5) 80% of the entertainment allowance was used for the employer’s business.
Required:
Calculate Brian’s tax payable or tax refundable for the year ended 30 June 2020.
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