Airtech (Pty) Ltd (“Airtech” or “the company”) is a registered category B VAT vendor, engaged in the business of manufacture and supply of air conditioners. The company operates from Tshwane During its year of assessment ended 28 February 2022, the company had the following transactions: Purchase of new machine On 18 January 2022, the company imported a new machine from a supplier in China. The Rand equivalent cost of the machine was R630 000, which also represents its customs duty value. Import duties amounted to R20 000. The machine was delivered and brought into use in the process of manufacture on 1 February 2022. Prior to the purchase, the production manager of Airtech travelled to China to ensure that the machine was suitable for the company’s manufacturing requirements. Airtech incurred the following costs in January 2022 in this regard: Returns flights – China/South Africa (purchased in South Africa) R22 000 Accommodation and meal costs (incurred in China) R17 500 Employee accommodation On 20 May 2021, Airtech purchased vacant land in Tshwane, from a non-vendor (unconnected to the company) for R1 350 000. Full payment was made on 28 May 2021 and registration of the land in Airtech’s name took place on 15 July 2021. A block of apartments, consisting of six identical units was erected on the land, at a total cost of R1 800 000 (including VAT). The unfurnished apartments were completed on 27 September 2021 and right of use was granted to the relevant employees of Airtech from 1 October 2021. None of the employees are charged a rental for the apartments. Employment of new sales manager The sales manager resigned from his position effective 31 December 2021. A new sales manager (Mr. Sizwe Dhlomo, aged 48, is unmarried with no children) was employed by Airtech, effective from 1 February 2022. The following information relates to Sizwe’s employment: • In terms of his employment contract, a basic salary of R55 000 is payable to him on the 25th day of each month. • Sizwe makes a monthly contribution to the Airtech Pension Fund (a defined contribution fund), based on 8% of his basic salary. Airtech contributes a further 8% to the fund on a monthly basis, also based on Sizwe’s basic salary. • Use of one of the apartments (see above) was granted to Sizwe with effect from 1 February 2022. The apartment (previously used by the former sales manager) consists of four rooms (unfurnished) and Sizwe is responsible for all electricity costs. His remuneration proxy is R885 633. Sizwe does not hold a right of option or pre-emption to become the owner of the accommodation, neither does he own any shares in Airtech. • Sizwe was immediately granted exclusive use of a company-owned vehicle (a Kia Sportage), which will be used for both private and business purposes. His business usage is expected to be less than 80%. He does not pay any consideration to Airtech in this regard and the company bears all costs in relation to the vehicle, which was purchased on 1 November 2020 at a cost (equal to retail market value) of R358 800 (including VAT). The previous sales manager of Airtech enjoyed right of use of the vehicle since its purchase, until his resignation. The vehicle is not covered by a maintenance plan. For the month of February 2022, per his logbook, Sizwe travelled a total of 2 280 kilometres, of which 480 kilometres related to business travel. Questions: 1. Discuss with calculations, whether Airtech is entitled to claim any capital allowances for 2022 in respect of employee housing - South african tax law . 2. Calculate the employees tax witheld by Airtech from Sizwe's remuneration for Feb 2022.