CAP REDO REVISED QUIZ: LUMP SUMS
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Question 1 of 10
1. Question
Samantha resigned from employment in 1990 and transferred an amount of R 540 000 to a retirement annuity after first taking a cash amount of R50 000. Shortly thereafter she joined another company and became a member of their employment provident fund. She resigned in 1 March 2024 and needs your advise .The total retirement fund value is: R 902 000 and she would like to draw an amount of R 200 000 and the remaining amount of R 702 000 must be transferred into a provident preservation fund.She has contributions which have been disallowed amounting to R 101 000. These contributions are as a result of contributions of R75 000 which were made before 1 March 2016 and, contributions of R26 000 which were made after 1 March 2016 up to date.Calculate the amount the amount of tax that Amanda will have to pay on the R200 000 that she wants to draw in cash.Select the correct option:CorrectIncorrect -
Question 2 of 10
2. Question
Janet dies at the age of 72. The following facts are relevant for accurate calculation.1. 1970 Janet resigned from the company pension fund and received an amount of R 23 000.2. In 2001 Janet was retrenched as her employer closed his business. An amount of R1 430 000 was transferred from the company pension fund into a Retirement Annuity AB.3. In December 2007, Janet had to resign from employment due to ill health and received R320 000 from the company pension fund. This was 1/3rd and 2/3rds was invested in a living annuity.4. In March 2009, she matured her retirement annuity and drew R412 000, 1/3rd, in cash and invested the remainder into living annuity 2.The living annuity 1 and 2, had a total value of R640 000 on the day of her death. Her beneficiaries opt to continue with the living annuity and do not commute any amounts in cash.SARS has on record that, on Janet’s death, an amount of R230 000 are contributions that were previously disallowed and were not used to exempt the annuity according to S10C.Calculate the lump sum tax that has to be paid as a result of Janet’s death. Select the correct option.CorrectIncorrect -
Question 3 of 10
3. Question
Janet dies at the age of 72. The following facts are relevant for accurate calculation.
- 1970 Janet resigned from the company pension fund and received an amount of R 23 000.
- In 2001 Janet was retrenched as her employer closed his business. An amount of R1 430 000 was transferred from the company pension fund into a Retirement Annuity AB.
- In December 2007, Janet had to resign from employment due to ill health and received R320 000 from the company pension fund. This was 1/3rd and 2/3rds was invested in a living annuity.
- In March 2009, she matured her retirement annuity and drew R412 000, 1/3rd, in cash and invested the remainder into living annuity 2.
The living annuity 1 and 2, had a total value of R640 000 on the day of her death. Her beneficiaries elect to cash in the entire amount and not to continue with the annuity.
SARS has on record that, on Janet’s death, an amount of R230 000 are contributions that were previously disallowed and were not used to exempt the annuity according to S10C.
Calculate the lump sum tax that has to be paid as a result of Janet’s death. Select the correct option.
CorrectIncorrect -
Question 4 of 10
4. Question
According to the rules of the Pension fund of which Tammy is a member, the retirement age is 65. She intends to retire and would like to draw as much as is allowed. The retirement interest is R3 200 000. Calculate and advise Tammy on the net amount that she will receive from the interest in her fund:Select the correct option:CorrectIncorrect -
Question 5 of 10
5. Question
Betty was employed in 1/3/1980 and became a member of the government provident funds. Betty resigned from this government provident fund on 1/4/2015 and transferred the full fund value of R 2 500 000 into a provident preservation fund CD. Betty had reached 55 on the 1/3/2021.
Betty has decided to retire and does not want to invest her provident preservation into an annuity electing to draw the entire amount, which has grown to R3 200 000, in cash.
Betty did invest into her own private retirement annuity and is maturing this RA which has a total amount of R790 000. She has elected to draw an amount of R100 000 in cash and invest the remaining amount into a living annuity.
The lump sum tax that Betty will pay as a result of the above transactions amount to: select the correct option.
CorrectIncorrect -
Question 6 of 10
6. Question
Jack is 55 years and finds himself in some financial difficulties and has no choice but to draw an amount of R1 000 000 from his Provident Preservation Fund. This preservation fund was pension interest which was transferred from his employer provident fund from which he resigned in 2001. Jack has made no other withdrawals and has not retired from any other retirement fund. The tax payable on the withdrawal is:
Select the correct option:
CorrectIncorrect -
Question 7 of 10
7. Question
Mary was retrenched from her employment on the 1st of April 2013 as a result of a general retrenchment and received a total amount of R250 000 from her employer.
She is also a member of the employer Provident fund which has a pension interest of R560 000. Mary decides to transfer R250 000 from the employer fund to a Pension Preservation Fund, and drew the remainder in cash.
Mary would like to travel to visit her aunt who resides in New York and wants to draw an amount of R300 000 from the preservation fund. Select the correct statement:
CorrectIncorrect -
Question 8 of 10
8. Question
Kathy is 65 years and is entitled to an amount from her employer Provident Fund which amounts to R 2 000 000. She elects to retire when she is 70 and transfers this amount to a Provident Preservation Fund with a retirement date of 1/4/2029. 3 months following this decision, Kate informs you that she is in dire need of R500 000 and her only option is to draw from the preservation fund.Select the correct optionCorrectIncorrect -
Question 9 of 10
9. Question
Kevin is 60 and has to retire from employment and the employer pension fund which has a total pension interest of R 2 000 100. Kevin has decided to mature his private retirement annuity as well which a retirement interest of R 1 100 200.
Kevin divorced 2010 and was awarded an amount of R250 000 which was payable by his ex-wife’s provident fund. He transferred this amount into a Provident Preservation Fund. The current value is R432 000 and Kevin would like to mature this fund as well.
Kevin wants to draw the maximum allowed on all the funds. He has an amount of disallowed contributions across the board amounting to R92 100.
Calculate the tax on the lump sum amount which Kevin is able to commute.
CorrectIncorrect -
Question 10 of 10
10. Question
Sam died in March 2024 and the following transactions are taking place:
- A Retirement Annuity with a total fund value of R 780 000. As a result of her death, Sam’s beneficiaries opted to take the full amount in the form of a living annuity.
- A Provident fund with a total retirement interest of R 960 000. The trustees agreed to pay to her nominated beneficiaries the amount in cash.
Sam’s mother died 5 years ago and had nominated Sam as the beneficiary on her living annuity. Sam at the time needed the money and took the amount of R450 000 in cash.
Calculate the tax payable
CorrectIncorrect