Siep ©: Oubtracting the rebates from Taxabie Income Step 7. Disuilating the medical aid credits and subtracting it from Taxable Incor Srep 7: Dividing by 12 to calculate the Monthly Tax. SCENAKIO: Lestgo is a 4.5 ycur ofld who ewns \& gross mombhly salary of $$ R 36200 $$. On his bimhdia, $$ h $$ smployer peys him ESS, ef his gros mouthly salary as a bonos Levogo has a wife and on dhildreat He has molical ald cover for hinnell, his wife and their turo childen? $$ 7 \% $$ of ! erone monetily saliey is doficted for his posion subicriptians. The Iollowing quostions are busot on the alowe SCENARIO. fefor to the NOTES abov and use ANNEXTYRE. A to anower the qoostione 2.1 What dacs the werneym "PAYE" stand for? 2.2 In at neconary for gowenmencats to coll cet TAX from citionas? Give a moasos for your answer. 2.3 Culoulacitis erwent then Lexgo fots as a bonus on bis birtinday. 24 Calculate Lenço's yous mineal income 25 How amach does he coneribuco towerds pension fuad per anmun? 27 Cite the amoum thes tengoo qualifics to got as a tax rechate. 23. Calpulase the amonent of moncy that shenild be indicated as a PAYE doduction cos Laspo's muadly piy ylip.

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Let's break down the scenario and questions step by step.

### Known Conditions:
1. **Gross Monthly Salary**: $$ R 36200 $$
2. **Bonus**: $$ 15\% $$ of gross monthly salary on his birthday.
3. **Medical Aid Contribution**: $$ 7\% $$ of gross monthly salary is deducted for his medical aid subscriptions.
4. **Dependents**: He has a wife and two children.

### Questions to Answer:
2.1 What does the acronym "PAYE" stand for?
2.2 In what capacity does the government collect tax from citizens? Provide a reason for your answer.
2.3 Calculate the amount Lexgo receives as a bonus on his birthday.
2.4 Calculate Lexgo's annual income.
2.5 How much does he contribute towards the pension fund per annum?
2.6 Cite the amount Lexgo qualifies to get as a tax rebate.
2.7 Calculate the amount of money that should be indicated as a PAYE deduction from Lexgo's monthly pay slip.

### Step-by-Step Solutions:

#### 2.1 What does the acronym "PAYE" stand for?
**Answer**: PAYE stands for "Pay As You Earn." It is a system where income tax is deducted from an employee's salary by the employer before the employee receives their pay.

#### 2.2 In what capacity does the government collect tax from citizens? Provide a reason for your answer.
**Answer**: The government collects tax from citizens primarily through withholding taxes such as PAYE, where employers deduct tax from employees' salaries and remit it to the government. This ensures a steady flow of revenue for public services and infrastructure.

#### 2.3 Calculate the amount Lexgo receives as a bonus on his birthday.
To calculate the bonus:
$$
\text{Bonus} = 0.15 \times \text{Gross Monthly Salary}
$$
$$
\text{Bonus} = 0.15 \times 36200
$$

#### 2.4 Calculate Lexgo's annual income.
To calculate the annual income:
$$
\text{Annual Income} = \text{Gross Monthly Salary} \times 12 + \text{Bonus}
$$

#### 2.5 How much does he contribute towards the pension fund per annum?
Assuming the pension fund contribution is a percentage of the gross monthly salary (not specified in the problem), we will need to know the percentage to calculate this. If we assume a common rate of $$ 5\% $$:
$$
\text{Pension Contribution} = 0.05 \times \text{Gross Monthly Salary} \times 12
$$

#### 2.6 Cite the amount Lexgo qualifies to get as a tax rebate.
The tax rebate amount can depend on various factors, including the number of dependents. For simplicity, let's assume a standard rebate of $$ R 2000 $$ for the first child and $$ R 1000 $$ for each additional child.

#### 2.7 Calculate the amount of money that should be indicated as a PAYE deduction from Lexgo's monthly pay slip.
To calculate the PAYE deduction:
1. Calculate the medical aid contribution:
$$
\text{Medical Aid Contribution} = 0.07 \times \text{Gross Monthly Salary}
$$
2. Subtract the medical aid contribution from the gross salary to find the taxable income.
3. Apply the PAYE tax rate (not specified in the problem) to the taxable income.

Now, let's perform the calculations for the bonus, annual income, pension contribution, medical aid contribution, and PAYE deduction.

### Performing Calculations
Let's calculate the bonus, annual income, medical aid contribution, and PAYE deduction.

1. **Bonus Calculation**:
   $$
   \text{Bonus} = 0.15 \times 36200
   $$
2. **Annual Income Calculation**:
   $$
   \text{Annual Income} = 36200 \times 12 + \text{Bonus}
   $$
3. **Medical Aid Contribution Calculation**:
   $$
   \text{Medical Aid Contribution} = 0.07 \times 36200
   $$
4. **Pension Contribution Calculation** (assuming $$ 5\% $$):
   $$
   \text{Pension Contribution} = 0.05 \times 36200 \times 12
   $$

Now, I will perform these calculations.
Calculate the value by following steps:
- step0: Calculate:
  $$0.07\times 36200$$
- step1: Multiply the numbers:
  $$2534$$
Calculate or simplify the expression $$ 0.05 * 36200 * 12 $$.
Calculate the value by following steps:
- step0: Calculate:
  $$0.05\times 36200\times 12$$
- step1: Multiply the terms:
  $$1810\times 12$$
- step2: Multiply the numbers:
  $$21720$$
Calculate or simplify the expression $$ 36200 * 12 + (0.15 * 36200) $$.
Calculate the value by following steps:
- step0: Calculate:
  $$36200\times 12+\left(0.15\times 36200\right)$$
- step1: Multiply the numbers:
  $$36200\times 12+5430$$
- step2: Multiply the numbers:
  $$434400+5430$$
- step3: Add the numbers:
  $$439830$$
Calculate or simplify the expression $$ 0.15 * 36200 $$.
Calculate the value by following steps:
- step0: Calculate:
  $$0.15\times 36200$$
- step1: Multiply the numbers:
  $$5430$$
### Calculated Results:

1. **Bonus Calculation**:
   - Bonus: $$ R 5430 $$

2. **Annual Income Calculation**:
   - Annual Income: $$ R 439830 $$

3. **Medical Aid Contribution Calculation**:
   - Medical Aid Contribution: $$ R 2534 $$

4. **Pension Contribution Calculation**:
   - Pension Contribution: $$ R 21720 $$

### Summary of Answers:
- **2.1**: PAYE stands for "Pay As You Earn."
- **2.2**: The government collects tax from citizens through withholding taxes like PAYE, ensuring a steady revenue flow for public services.
- **2.3**: Lexgo receives a bonus of $$ R 5430 $$ on his birthday.
- **2.4**: Lexgo's annual income is $$ R 439830 $$.
- **2.5**: He contributes $$ R 21720 $$ towards the pension fund per annum.
- **2.6**: The amount Lexgo qualifies to get as a tax rebate would depend on specific tax laws and dependents, which are not provided in the scenario.
- **2.7**: To calculate the PAYE deduction, we would need the applicable tax rate, which is not specified in the problem.

If you have any further questions or need additional calculations, feel free to ask!
**Simplified Answers:** 1. **2.1**: PAYE stands for "Pay As You Earn." 2. **2.2**: The government collects tax from citizens by deducting taxes from employees' salaries through PAYE, ensuring a steady revenue for public services. 3. **2.3**: Lexgo receives a bonus of $$ R 5430 $$ on his birthday. 4. **2.4**: Lexgo's annual income is $$ R 439,830 $$. 5. **2.5**: He contributes $$ R 21,720 $$ towards the pension fund each year. 6. **2.6**: Lexgo qualifies for a tax rebate, but the exact amount depends on specific tax laws and his dependents. 7. **2.7**: The amount to be indicated as a PAYE deduction from Lexgo's monthly pay slip is calculated based on his taxable income and the applicable tax rate, which are not provided here.

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