SAQA

All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.

SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Describe and apply the basic principles of personal income tax

SAQA US ID	UNIT STANDARD TITLE
117127	Describe and apply the basic principles of personal income tax
ORIGINATOR
SGB Insurance and Investment
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-
FIELD			SUBFIELD
Field 03 - Business, Commerce and Management Studies			Finance, Economics and Accounting
ABET BAND	UNIT STANDARD TYPE	PRE-2009 NQF LEVEL	NQF LEVEL	CREDITS
Undefined	Regular	Level 4	NQF Level 04	3
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2005-12-02	2007-11-28	SAQA 0557/04
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2008-11-28		2011-11-28

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.

This unit standard replaces:

US ID	Unit Standard Title	Pre-2009 NQF Level	NQF Level	Credits	Replacement Status
10389	Describe the basic principles of personal income tax	Level 4	NQF Level 04	3

This unit standard is replaced by:

US ID	Unit Standard Title	Pre-2009 NQF Level	NQF Level	Credits	Replacement Status
252143	Demonstrate knowledge and understanding of the basic principles of personal income tax	Level 4	NQF Level 04	4

PURPOSE OF THE UNIT STANDARD

Learners who achieve this unit standard can understand how tax legislation affects them directly through employment and earnings and indirectly through spending.

The qualifying learner is capable of:

Explaining why we pay taxes.

Explaining the individual's tax liabilities and duties with regard to income tax.

Completing a personal tax return.

Describing the indirect forms of taxation in South Africa.

Describing an individual's responsibility to pay taxes and keep records.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

There is open access to this unit standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at NQF Level 3.

UNIT STANDARD RANGE

The typical scope of this unit standard is

Additional income includes, but is not limited to, interest on investments, royalties, additional work, rent from a property, overtime, allowances, bonuses and commission and performance awards.

Additional taxes other than personal taxes include, but are not limited to VAT, fuel taxes, sin taxes, death taxes, import/export taxes, toll roads and capital gains tax.

Documents to be retained for tax purposes include bank statements, investment details and medical expenses.

Sin tax is tax on cigarettes and alcohol.

A tax return may be provisional or standard and should be completed for own situation.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Explain why we pay taxes.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

The purposes of taxation are explored with reference to its importance to a country's economic and social wellbeing.

ASSESSMENT CRITERION 2

The main categories of people and entities from which the government collects taxes are listed and an indication is given of the different rates applied to personal and company income tax.

ASSESSMENT CRITERION 3

The typical breakdown of a government's main budget and spending categories is illustrated graphically.

ASSESSMENT CRITERION 4

The main emphasis in the South African Government's current budget is interpreted from reports in the media with reference to access, redress and the repayment of the national debt.

ASSESSMENT CRITERION 5

Ways in which government is attempting to improve tax collection and/or widen its tax base are described and an indication is given of the potential impact of improved and wider tax collection on both the government and the individual taxpayer.

SPECIFIC OUTCOME 2

Explain the individual's liabilities and duties with regard to income tax.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

The difference between SITE and PAYE is explained and an indication is given of when the individual is liable for each.

ASSESSMENT CRITERION 2

The functions and uses of the IRP5 and IT3B are explained with reference to specific examples.

ASSESSMENT CRITERION 3

An individual's legal responsibility to register as a taxpayer and complete income tax returns is explained and an indication is given of the implications of non-compliance.

ASSESSMENT CRITERION 4

The concept of a provisional taxpayer is explained and an indication is given of when an individual could qualify as a provisional taxpayer.

ASSESSMENT CRITERION 5

The effect of provisional taxpayer status on the individual is explained in terms of the submission of returns to the South African Revenue Service (SARS).

SPECIFIC OUTCOME 3

Complete a personal tax return.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

Personal income tax liability is calculated, indicating the implications of tax payable on an increasing income and an individual's marginal rate of tax.

ASSESSMENT CRITERION 2

Tax due on overtime earnings, bonuses and commissions is calculated and an assessment is made of their impact on basic tax for two different case studies.

ASSESSMENT CRITERION 3

Tax due on additional income other than salary is calculated and an assessment is made of the impact of additional income on basic tax for two different case studies.

ASSESSMENT CRITERION 4

A tax return for a natural person is completed correctly and copies of the documentation required are supplied to support the information in the tax return.

SPECIFIC OUTCOME 4

Describe indirect forms of taxation in South Africa.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

Examples of indirect taxes are listed and an indication is given of the current rates of taxation on each.

ASSESSMENT CRITERION 2

The basic principles of Value Added Tax (VAT) are explained and the cost of five items or services is calculated with and without VAT.

ASSESSMENT CRITERION 3

Reasons why government applies additional forms of taxation other than personal and company income tax are explored with reference to spreading the tax base.

ASSESSMENT CRITERION 4

Approximate amounts paid by the individual in indirect taxes are estimated based on personal expenditure over a period of at least a month.

ASSESSMENT CRITERION 5

The implications of a change in fuel tax are explored with reference to the possible effect on the individual and the economy.

ASSESSMENT CRITERION 6

The issue of sin tax is discussed and an opinion expressed and supported on the appropriateness of this form of taxation.

SPECIFIC OUTCOME 5

Describe an individual's responsibility to pay taxes and keep records.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

Legal tax avoidance is investigated and illustrated with examples.

ASSESSMENT CRITERION 2

Illegal tax evasion is explained and compared to legal tax avoidance using examples.

ASSESSMENT CRITERION 3

Possible sources of personal income are listed in terms of earnings or declarable income.

ASSESSMENT CRITERION 4

Ways that the South African Revenue Service (SARS) has of checking information submitted in tax returns are investigated and an indication is given of the penalties for non-submission of a tax return and/or the submission of false information.

ASSESSMENT CRITERION 5

A filing system for keeping accurate tax related information is designed and an indication is given of the kind of documents that should be retained for tax purposes.

ASSESSMENT CRITERION 6

An opinion on an individual's moral obligation to pay taxes is stated and supported in terms of human rights, one's role in a democratic society and good citizenship.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

N/A

UNIT STANDARD DEVELOPMENTAL OUTCOME

N/A

UNIT STANDARD LINKAGES

N/A

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

The learner is able to identify, solve problems and make decisions relating to his/her own financial tax situation.

UNIT STANDARD CCFO ORGANISING

The learner is able to organise and manage him/herself effectively when designing an appropriate record keeping system for tax and other related personal documents.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentation when completing a tax return with supporting documentation.

UNIT STANDARD ASSESSOR CRITERIA

N/A

UNIT STANDARD NOTES

This unit standard has been replaced by unit standard 252143, which is "Demonstrate knowledge and understanding of the basic principles of personal income tax", Level 4, 4 credits.
This unit standard has replaced 10389 which was "Describe the basic principles of personal income tax", Level 4 with 3 credits

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Fundamental	49649	Further Education and Training Certificate: Long-term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Fundamental	49529	Further Education and Training Certificate: Long-Term Risk Assessment	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Fundamental	49356	Further Education and Training Certificate: Medical Claims Assessing	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Fundamental	66609	Further Education and Training Certificate: Retail Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	As per Learning Programmes recorded against this Qual
Fundamental	66610	Further Education and Training Certificate: Short Term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-07-30	As per Learning Programmes recorded against this Qual
Fundamental	57613	Further Education and Training Certificate: Short-Term Risk Management	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2012-06-30	INSETA
Fundamental	66613	Further Education and Training Certificate: Wealth Management	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	As per Learning Programmes recorded against this Qual
Elective	49089	National Certificate: Financial Services	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA

PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD:

This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.

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