Lesedi is 25 years old. She is a single mother of two. Lesedi and her two children belong to a medical aid. During the current year of assessment her employer contributed R22 222 to her medical aid scheme and R33 333 to her retirement annuity fund on behalf. Lesedi made equal contributions to her medical aid scheme and to her retirement annuity fund. YOU ARE REQUIRED to calculate the taxable benefit that should be included in Lesedi’s gross income for the current year of assessment.a.R33 333b.R55 555c.R22 222d.R111 111
Question
Lesedi is 25 years old. She is a single mother of two. Lesedi and her two children belong to a medical aid. During the current year of assessment her employer contributed R22 222 to her medical aid scheme and R33 333 to her retirement annuity fund on behalf. Lesedi made equal contributions to her medical aid scheme and to her retirement annuity fund. YOU ARE REQUIRED to calculate the taxable benefit that should be included in Lesedi’s gross income for the current year of assessment.a.R33 333b.R55 555c.R22 222d.R111 111
Solution
The taxable benefit that should be included in Lesedi’s gross income for the current year of assessment is the amount her employer contributed to her medical aid scheme and retirement annuity fund.
Step 1: Determine the total contributions made by the employer.
The employer contributed R22 222 to her medical aid scheme and R33 333 to her retirement annuity fund.
Total contributions by employer = R22 222 (medical aid) + R33 333 (retirement annuity) = R55 555
Step 2: Determine Lesedi's contributions.
It is stated that Lesedi made equal contributions to her medical aid scheme and to her retirement annuity fund. Since the employer's contribution to each is known, it can be assumed that Lesedi also contributed R22 222 to her medical aid and R33 333 to her retirement annuity.
Total contributions by Lesedi = R22 222 (medical aid) + R33 333 (retirement annuity) = R55 555
Step 3: Calculate the taxable benefit.
The taxable benefit is the amount that the employer contributed on behalf of Lesedi. This is the amount that should be included in Lesedi’s gross income for the current year of assessment.
Therefore, the taxable benefit is R55 555.
So, the correct answer is (b) R55 555.
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