Robert Mashaba, aged 56, was employed for many years by EUC, a coal-based electricity utility company, as its chief engineer. He was paid a gross cash salary of R850,000 per annum. Robert resigned from EUC with an effective date of 30 June 2018. EUC had been making employer contributions equivalent to 10% of Robert's cash salary to the company pension fund and a further R3,000 per month to the medical aid scheme (in which Robert is the main member and his wife a dependant). Robert contributed the equivalent of the employers contribution to the pension fund to a retirement annuity fund after retirement and also took over the medical aid contributions on his resignation. Under the terms of EUC's employee loan scheme, Robert borrowed R1 million from the company to purchase a rental apartment on 1 March 2017. The loan was interest free. As the loan was repayable Tax 3247 May 2022 A 7 on resignation, Robert obtained mortgage funding from a bank of R1 million over the apartment. Interest on this bank loan amounted to R78,500 for the period 1 July 2018 to 28 February 2019. Robert receives rental income from the apartment of R60,000 per annum. Since the purchase of the apartment on 1 March 2017, it has been loss making. The loss for the 2018 year of assessment was fully utilised against Robert's other income in the year. Robert also received a bonus and annual leave pay-out from EUC which amounted to R140,000 and was paid on 1 July 2018. Robert did not work for the remainder of the 2019 year of assessment.
(a) Calculate the employees' tax withheld and paid to the South African Revenue Service (SARS) by EUC in respect of Robert's employment for the 2019 year of assessment.
(b) Calculate Robert's tax liability payable or refund due for the 2019 year of assessment. (9 marks) Note: You should indicate by the use of a zero (0) any amounts which are not taxable or not deductible.
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