Calculate the Fringe Benefits Received by Tix
Miss Tix Brown, 33 years old and unmarried, is employed as a project leader by Can count Limited, a provider of
telecommunication products and services. The following information relates to Tix for the year of assessment ended 28
Tix borrowed R60 000 from her employer on 1 December 2007 to finance a portion of the acquisition of her vehicle. The
company charges her a fixed interest rate of 10% per annum. On I March 2008 the outstanding capital balance was R54
- During the current year, she repaid R10 000 on 31 July 2008 and R14 000 on 28 February 2008.
Tix was living in one of her employer’s houses up to 31 January 2009. The house is unfurnished and she had to pay for her
own power consumption.
Tix’s remuneration factor is R140 000. Tix receives R500 per month to entertain clients. During the year she spent R6 750
on entertaining clients.
Can court Limited runs a cafeteria for their staff. On average, Tix has a meal there twice a day, three days a week, 48 weeks
a year. She saves approximately R10 per meal compared to what she would have paid had she eaten at a public restaurant.
From 1 August 2007, Tix’s employer provided her with a company car and ceased paying her the monthly travelling
allowance of R3 200. She was provided with a BWM 118, with a cost price of R148 200 (including VAT). The BWM was
previously used by another employee for 1 year.
Calculate the fringe benefits received by Tix for the year of assessment ended 28 February 2009.
Ignore the effect of Capital Gains Tax
Assume that the official rate of interest was 12% for the full period.