Taxation of Business Activities and Individuals (TAX3761)
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Estate Dute Tax Questions & Solutions
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Course
Taxation of Business Activities and Individuals (TAX3761)
Institution
University Of South Africa (Unisa)
Explore this essential resource designed for students and professionals dealing with estate duty tax calculations and scenarios. This document offers a series of challenging questions along with detailed solutions, focusing on the application of estate duty tax laws in various complex situations. K...
Taxation of Business Activities and Individuals (TAX3761)
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TAX3761/105
SELF-ASSESSMENT QUESTIONS
(The solutions can be found at the end of this study guide.)
QUESTION 17.1 (12 marks, 22 minutes)
When A (the holder of a usufruct over a property) died, B (a male of 38 years old and the bare
dominium holder of the same property) received the full ownership of the property. The property
was worth R1 750
The property was originally left to B, subject to a lifelong usufruct in favour of A (a male aged 82
years and two months), when F died, exactly two years ago.
price of R10 000 The value of the property was R1 500
REQUIRED:
QUESTION 17.2 (17 marks, 31 minutes)
John Rupert died in Bloemfontein on 31 October 2020. He is survived by his wife, Petronella, to
whom he was married out of community of property, and his two major daughters, Rosemary and
Marinda.
R
1. Residence in Bloemfontein, valued at 1 250 000
2. Furniture and effects, valued at 300 000
3. 256 400
Premiums plus 6% interest on this policy amounted to R30 000.
4. e, paid directly to Petronella Rupert in terms
of a properly registered ante-nuptial contract 160 000
Premiums plus 6% interest on this policy amounted to R20 000. John paid the
premiums on both policies A and B.
5. John was the recipient of an annuity of R10 000 per annum, paid to him from
the profits of a business left to his brother, Mark, by their late father.
The annuity was created
John was born on 16 June 1960.
Mark was born on 10 March 1965.
6. Fixed deposit with a bank 120 000
John made this investment on 31 May 2009, when his father died, utilising the
R120
in 2006.
99
, QUESTION 17.2 (continued)
R
7. Units in Super Growth Fund, valued at 5 250 000
8. 70
amounting to R251 174.
s the following relevant provisions:
An amount of R10 000 was bequeathed to a registered charitable organisation.
The residence, furniture and effects were bequeathed to the surviving spouse.
The residue of the estate was bequeathed to the daughters in equal shares.
REQUIRED:
Calculate the estate duty payable in this estate. Round your answer off to the nearest rand.
QUESTION 17.3 (20 marks, 24 minutes)
Charlene Nakedi was diagnosed with terminal cancer during August 2020. She is married to Daniel
out of community of property and they have a daughter, Janette, aged 21, and a son, James, aged
19. A few months later, on 25 February 2021, Charlene died in Pretoria, South Africa, where she
resided.
Before Charlene died, she made the following donations:
On 15 July 2020, she told James that he would receive her vehicle when she dies one day.
The value of the vehicle was R300 000 on that date.
death was R250 000.
On 5 October 2020, she donated her holiday flat in Durban to her husband, Daniel. The flat
was valued at R1 500 000 at the time of the donation.
On 20 February 2021 she donated listed shares, valued at R200 000, to Janette. Charlene
made the donation as she realised she would not live much longer.
100
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