Saul (40 years old) is the regional manager for a group of clothing stores. He is married out of community of property and has a fifteen-year-old child. His receipts, benefits, and expenses for the 2023 year of assessment are listed below:

Notes R
RECEIPTS/BENEFITS
Salary 730,000
Study award ₁ 11,000
Acquisition of clothing ₂ ?
Travel allowance ₃ 50,000
Use of company cell phone ₄ ?
Loan from employer ₅ 500,000
Long service award ₆ ?
Dividends received – Foreign unit trusts (not from a tax-free investment) 4,000
Foreign interest received (not from a tax-free investment) 800
Local interest received (not from a tax-free investment) 27,000

EXPENSES
Current pension fund contributions ₇ 30,000
Current retirement annuity fund contributions ₇ 180,000
Medical expenses ₈ 33,000

Notes:
1. Saul completed a post-graduate diploma in marketing at a South African university on 1 November 2022. He passed the one-year course with distinction. On 1 January 2023, Saul’s employer paid him R11,000 in recognition of his successful completion of the course. The award covered the academic enrollment fees that he had paid.

2. Subject to certain limits, Saul’s employer permits staff to purchase company stock at a 50% retail discount. During the 2023 year of assessment, Saul purchased clothing from his employer for an amount of R3,000. The normal retail price of these items was R6,000. The original cost of the clothing for the employer was R4,000.

3. From 1 April 2022, Saul was required to travel throughout Gauteng on a regular basis, in terms of his contract of employment. He accordingly received a total travel allowance of R50,000 for the period from 1 April 2022 to 28 February 2023. He kept accurate records of business distances traveled but kept no records of costs incurred. The total distance traveled during the period amounted to 8,000 kilometers, of which 2,000 kilometers were for private purpose.