TAX1501 Exam MayJune 2025
TAX1501 Exam MayJune 2025
UNIVERSITY EXAMINATIONS
TAX1501
80 Marks
Duration 120 Minutes (2 hrs)
Examiners:
Ms R Moosa
Mr L Motsami
• Go to MyExams https://myexams.unisa.ac.za and login with your MyUnisa credentials i.e. student
number and password (Alternatively, open myUnisa and click on the myExams link).
• On the myExams page, select the date of the assessment and choose:
TAX1501 Exam May/June 2025 (Invigilator App) to open the assessment page.
• Log in with your myUnisa credentials, i.e. student number and password.
• You will then be directed to the Dashboard of the College’s exam portal.
• Click on the myExams button in the header and select TAX1501-25-EX06.
• On the modules exam page, select the examination question paper:
TAX1501 Exam May/June 2025.
• The examination paper will remain available throughout the examination session.
• Ensure you are connected to the internet to commence the invigilation at the beginning as well as
at the end of the assessment.
• If you encounter difficulty in scanning the QR code, you can alternatively enter the Exam Access
Code below the QR code to start the invigilation.
• Note that you should scan the QR code as soon as you start with your assessment.
• Please take note that you can only scan the QR code for a limited time after the commencement
time of the assessment (15 minutes prior to the commencement of the examination and 30 minutes
once the examination has started), and it should therefore be scanned as soon as possible to start
the invigilation.
• Please note that you can only scan the QR code once. Make sure you are ready to start the
assessment when you scan the QR code.
• You must provide proof in the form of a screenshot with a visible timestamp if you experienced any
issues with the app. The screenshot must clearly show that you attempted to access the app
BEFORE 08:30am.
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TAX1501 May 2025 Exam
• It is important to note that you must adhere to the time limit in your myExams assessment, as the
invigilation time in the app could exceed the time allocated to complete your assessment.
• You are not allowed to minimise or exit the app during your assessment. If you have been logged
out of the Invigilator App for a total of 10 minutes or more, it will be considered as not using the
prescribed proctoring tool. If you finish your assessment before the app timer has run out, you
need to press the ‘Finished assessment’ button and follow further instructions before you
leave the app.
• The Invigilator app will request you to take photos of your answer script (i.e. scan) after the
assessment. Please follow the instructions on the app. Take note that you are still required to
upload your answer script to the relevant UNISA portal. Your submission on the Invigilator
App does NOT replace the normal upload of your script to the myexams portal on myUnisa.
If you only upload your answer script on the Invigilator app and not on the myexams portal,
your script WILL NOT BE marked.
• Keep the Invigilator app open on your smartphone during the assessment. You are not allowed to
leave or minimise the application. You cannot minimise the application and use your
smartphone for typing. If you wish to use a smartphone for typed answers you will need an
additional smartphone.
• You must adhere to the assessment time limit of 2 hours as the time displayed in the Invigilator
App could differ from the time allocated to complete your assessment.
• You can click the “Finish Assessment” button in the app if you finish your assessment early.
• Should you encounter any technical difficulty, please WhatsApp the Invigilator Helpdesk on: 073 505
8273
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TAX1501 May 2025 Exam
• Commence the submission (uploading) of your script as soon as you have completed the
assessment; you do not have to wait for the session to conclude.
• Start uploading your script at 10:00am (2 hours after the start of the examination session) at
the latest, to allow enough time for any delays in the process.
• Your submission will be date-stamped, and only submissions received up to 10:30am will be
marked.
• You MUST submit your answers in one PDF file. The file name of your PDF document must be
in the following format: Student number, space, TAX1501. For example: 33445566 TAX1501.
• Remember to complete the Honesty Declaration (Part of the file submission process).
1. You must complete writing your examination within the official examination session (08:00am to
10:00am). The 30 minutes extra provided after the official examination session must only be used
for the uploading of the examination paper. This provides you with enough time to resolve any
uploading challenges you may experience.
2. No emailed or late submissions will be accepted. Note that the university has a record of all
examination activities, including login, download and upload times, as well as the number of times
you attempt to upload your examination paper.
3. To limit potential problems with your device, close unnecessary applications and websites when
starting to upload your examination answer file. If you experience delays on myUnisa, do not panic.
Retry after a minute or so, and most of the time the system then allows access.
4. If you are unable to submit your examination script file, send an email to
TAX1501-25-S1@unisa.ac.za explaining the issue you encountered. Be sure to include a
relevant screenshot with a visible timestamp. Your screenshot must clearly show that you
attempted to submit your examination script via the myExams portal BEFORE 10:30am.
Queries submitted without a screenshot and timestamp will not be addressed.
5. If you experience technical problems of any kind, and no file is uploaded on the official myexams
portal on myUnisa by the cut-off time on the day of the examination, you will be marked as
absent, and no other arrangements can be made.
6. Issues that are beyond Unisa’s control include the following:
• Personal network or service provider issues;
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Students experiencing technical challenges, contact the SCSC 080 000 1870 or email
Examenquiries@unisa.ac.za or refer to Get-Help for the list of additional contact numbers.
5. FINAL INSTRUCTIONS:
1. Verify the file details for the final submission of your answer file.
2. Are all the pages included? Is it the correct file that you uploaded to the correct module code? If
you upload the incorrect answer file, your exam answer paper will not be marked, and you will be
regarded as absent from the exam. You cannot replace this file after the cut-off time, and you will
NOT be permitted to email any answers to us.
3. If the wrong details, e.g. file name, appear on the screen, click Back to restart the file upload
process.
4. Large files will take longer to upload than smaller files. Please be patient after you’ve clicked
Continue; do not click it again.
6. On successful submission, you will see a submission confirmation page. This is your proof that
your take-home answer file was submitted. Take a Screenshot of this page (or take a photo) for
record purposes.
6. PLAGIARISM
Students must complete the online declaration of their work when submitting their examination script.
Students suspected of dishonest conduct during the examinations will be subjected to disciplinary
processes. Students may not communicate with any other person or request assistance from any other
person during their examinations. The use of Telegram, WhatsApp or any other instant messaging
services with any other person (except when asking for technical assistance via official channels of the
SCSC or the Invigilator WhatsApp line) is strictly prohibited. Plagiarism is a violation of academic
integrity, and students who plagiarise, copy from published work or use Artificial Intelligence Software
(e.g. Chatgpt) will be in violation of the Policy on Academic Integrity and the Student Disciplinary Code
and may be referred to a disciplinary hearing. Unisa has a zero tolerance for plagiarism and/or any other
forms of academic dishonesty.
IMPORTANT INSTRUCTIONS:
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TAX1501 May 2025 Exam
2. All questions must be answered. Refer to the ANNEXURES attached at the end of this paper
from Page 14.
4. Please complete the cover page of each page in full i.e.: student number and module code.
5. Where applicable, all workings must be shown. All amounts must be rounded to the nearest
Rand.
7. This is an open-book exam. You are allowed to use your prescribed textbook, study guides, and notes;
however, the work must be your own. You are not permitted to work in groups or receive assistance
from anyone, including external sources.
8. Proposed timetable (try, as far as possible not to deviate from this timetable):
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TAX1501 May 2025 Exam
For this set of multiple-choice questions, read each question carefully and select the one answer you
believe is correct. Only one answer is correct for each question, so choose just one option and write the
corresponding letter (a, b, c, or d). Make sure to double-check your responses before submitting, as no
question allows multiple answers. Each question is worth 2 marks.
2. Which of the following tax is classified as a wealth-based tax? Please choose the correct answer.
a) Turnover tax
b) Donations tax
c) Value-added tax
d) Customs duty
4. How are fringe benefits accounted for in the individual’s taxable income framework?
a) Fringe benefits are included in gross income.
b) Fringe benefits are deducted from taxable income.
c) Fringe benefits do not affect gross income.
d) Fringe benefits only affect provisional tax.
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TAX1501 May 2025 Exam
5. Phindi had the use of residential accommodation supplied by her employer for the full 2025 year of
assessment; she has no interest in the property. Her remuneration proxy is R500 000. The
accommodation has four rooms, is furnished, and she pays for her water and electricity usage. Which
of the following statements is true?
a) The fringe benefit will be calculated using the formula, and C in the formula will be 17.
b) The fringe benefit will be calculated using the formula, and C in the formula will be 18.
c) The fringe benefit will be calculated using the formula, and C in the formula will be 19.
d) The value of the fringe benefit will be equivalent to the market-related rental charge for the
accommodation.
6. For a non-resident to be regarded as a resident in South Africa he/she must meet the requirements of
the physical presence test. What does Requirement 1 of the physical presence test states?
a) An individual must be present in the Republic for a period or periods exceeding 91 days in aggregate
in each of the previous five years of assessment.
b) An individual must be present in the Republic for a period or periods exceeding 915 days in
aggregate during the five previous years of assessment.
c) An individual must be present in the Republic for a period or periods exceeding 90 days in aggregate
in each of the previous five years of assessment.
d) An individual must be present in the Republic for a period exceeding 91 days in the current year of
assessment.
7. Carien is a salaried individual who earns a monthly income from her employer. She incurred the
following private expenses during the current year of assessment. Carien incurred the following
expenses: Home telephone expense of R3 000, Personal water and electricity of R2 400, Home
cleaning materials of R700 and Stationery for her son’s school R300.
Calculate the total allowable deductions, if any, that will be allowed in Cariens taxable income
calculation for the current year of assessment.
a) R0
b) R3 000
c) R5 400
d) R6 400
8. Averill is 32 years old. During the current year of assessment, she contributed R 1500 per month to a
retirement annuity fund. Her remuneration is R54 100 and her taxable income before retirement fund
deduction is R 54 100.
Calculate Averill’s total retirement fund deduction allowable in the current year of assessment.
a) R1 500
b) R3 122
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c) R14 878
d) R18 000
9. Winston is 66 years old and unmarried. Winston also owns shares in a foreign company. During the
current year of assessment, received the following income:
• Salary of R920 000
• Bonus of R90 000
• Interest income from a South African Bank of R45 000
He donated R36 000 to a public benefit organization. Winston received the section 18A receipt. A total
contribution of R79 190 was made to Winston’s retirement fund. His employer contributed R50 000 of
the total retirement fund contributions.
10. Alison has the right to use her employer’s holiday accommodation for 1 week each year. She and her
family used the holiday accommodation for 1 week in September 2024. Alison’s employer normally
rents the place out to unconnected persons for R2 400 per week, while she only paid R1 200.
Calculate the taxable portion of Alison’s fringe benefit for the year of assessment.
a) R0
b) R1 200
c) R2 400
d) R3 600
11. Cara is a finance manager in an investment company. On 1 March 2024 she received the right to use
a company owned vehicle. She used the vehicle for the rest of the year of assessment. The motor
vehicle costs her employer R375 000. No maintenance plan was included in the purchase cost of the
vehicle. The employer is responsible for the maintenance of the motor vehicle.
Calculate the taxable portion of Cara’s fringe benefit for the year of assessment.
a) R12 188
b) R13 125
c) R146 250
d) R157 500
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12. During the current year of assessment, Nasiphi received a travel allowance from her employer. She
provided you with the following information: Travel allowance received for the year was R78 000.
Private kilometers were 21 000km, actual business kilometers were 9 000km. The Vehicle cost
(including VAT) was R450 000. She kept a logbook of actual business kilometers travelled and does
not have the actual vehicle expenses incurred. You may assume that the total business cost has been
correctly determined to be R64 980.
Calculate the taxable amount (if any) that needs to be included in Nasiphi’s taxable income calculation.
a) R13 020
b) R64 980
c) R78 000
d) R142 980
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TAX1501 May 2025 Exam
Ayanda is a resident of South Africa. She is an interior designer in Johannesburg. You are Ayanda’s tax
consultant and have received the following question from Ayanda in respect of her 2025 year of
assessment:
“On 5 January 2025, I completed the design of a client’s studio (Mrs. X). On the same day, I invoiced Mrs. X
R120 000. In terms of the contract, the Mrs. X had to pay me the full amount on completion of the job, however, by
15 February 2025, she had only paid 60% of the amount (R72 000) into my bank account and gave me an asset worth
R48 000 as payment of the remainder of the balance on 23 February 2025.
I am unsure whether the amounts mentioned above will be included in my gross income for the 2025 year of
assessment. Please help!”
REQUIRED MARKS
Answer Ayanda’s question above. In your answer, you should discuss the
definition of Gross Income and apply it to the scenario above. 10
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TAX1501 May 2025 Exam
Simphiwe Makwarela is a 52-year-old resident who is married out of community of property to Shazia
Makwarela (49 years old). They have one child, Ayanda (20 years old). Simphiwe is the co-founder and
50% shareholder of Create (Pty) Ltd, a marketing company based in Pretoria, South Africa. Create also
employs Simphiwe as a Chief Designer.
Create’s records show the following income and expenses concerning Simphiwe’s 2025 year of
assessment:
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TAX1501 May 2025 Exam
REQUIRED: MARKS
a. Using the Tax Framework, calculate the normal tax due by or to Simphiwe for the
2025 year of assessment. 20
b. Calculate Simphiwe’s Total Medical Tax Credit (section 6A and 6B) for the 2025 10
year of assessment.
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TAX1501 May 2025 Exam
Thabo Mokoena, a 29-year-old mechanical engineer from Johannesburg, South Africa, had always
dreamed of expanding his horizons beyond local borders. After graduating with distinction and gaining five
years of solid experience in the renewable energy sector, his breakthrough came when an Australian
energy firm based in Melbourne offered him a lucrative permanent employment. The opportunity was too
compelling to pass up. With mixed emotions, Thabo began preparing for the move, realizing it required
more than packing bags. He decided to sell all his assets on 1 January 2025. He owned the following
assets:
• House in Fourways
He owned a suburban home in Fourways that he stayed in with his daughter. This was his primary
residence. He bought the house in 2020 for R3 500 000 and made improvements of R300 000 in
2023. He managed to sell the house for R6 000 000.
• Furniture
Thabo had furniture with a total cost of R1 800 000 in his house when he sold it. He bought all the
furniture in the year 2021. He sold all the furniture for R750 000. He just wanted to sell it.
• Vehicle
He had a fully paid-off VW Golf GTI that he bought in 2023 for R800 000. He sold it for R520 000.
REQUIRED MARKS
Calculate Thabo’s taxable capital gain/capital loss for the 2025 year of assessment. Provide
reasons for nil inclusions/exclusions, if there are any. 16
Hint: Calculate the Capital Gain of each asset separately and then an aggregate.
© UNISA
2025
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SCHEDULES
Where the taxable income does not exceed R237 100 18% of each R1 of the taxable income;
exceeds R237 100 but does not exceed R370 500 R42 678 plus 26% of the amount by which
the taxable income exceeds R237 100;
exceeds R370 500 but does not exceed R512 800 R77 362 plus 31% of the amount by which
the taxable income exceeds R370 500;
exceeds R512 800 but does not exceed R673 000 R121 475 plus 36% of the amount by which
the taxable income exceeds R512 800;
exceeds R673 000 but does not exceed R857 900 R179 147 plus 39% of the amount by which
the taxable income exceeds R673 000;
exceeds R857 900 but does not exceed R1 817 000 R251 258 plus 41% of the amount by which
the taxable income exceeds R857 900;
exceed R1 817 000 R644 489 plus 45% of the amount by which
the taxable income exceeds R1 817 000.
SCALE OF
VALUES
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(iii) Employer owned vehicles (Paragraph 7(4) of the Seventh Schedule)
Scale of values
Value of private use per month, vehicle not subject to maintenance plan = 3.5% x determined value
Value of private use per month, vehicle subject to maintenance plan = 3.25% x determined value
Daily allowance for food and incidental cost is R548 per day.
C. REBATES
Main member with two dependents (R364 + R364 + R246) ___________________________ R974
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Capital gains exclusions:
Annual exclusion for individuals and special trusts Paragraph 5(1) of R40 000
Eighth schedule
Exclusion on death Paragraph 5(2) of R300 000
Eighth schedule
Paragraph 45(1)(a) of Eighth R2 million
Exclusion for the disposal of a primary residence Schedule
Exclusion in respect of disposal of primary resi- Paragraph 45(1)(b) of Eighth R2 million
dence (based on amount of proceeds on dispo- Schedule
sal)
Maximum market value of all assets allowed with- Definition of “small R10 million
in the small business definition on disposal when business” in paragraph
person 55 years or older 57(1) of Eighth Schedule
Exclusion amount on disposal of small business Paragraph 57(3) of R1 800 000
when person 55 years or older Eighth schedule
Retirement savings thresholds:
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Description Reference to Income Tax Monetary
Act, 1962 amount
In the case of a natural person not carrying on Paragraph 18(1)(c)(i) of Taxable in-
a business Fourth Schedule come below
threshold
In the case of a natural person not carrying on Paragraph 18(1)(c)(i) of Taxable income
a business Fourth Schedule from interest, fo-
reign dividends,
rental income and
remuneration from
a foreign em-
ployer (not regis-
tered for PAYE)
does not exceed
R30 000
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