Show that Peter's taxable income is R267 800.00, given his annual income of R338,000 and a pension fund contribution of 7.5%.

Here are the calculations for Peter's income tax:

3.1.1 To show that Peter's taxable income is R267 800.00:

Step 1: Calculate Peter's pension fund contribution.
Annual income = R338 000
Pension contribution = 7.5% of annual income

$$\text{Pension contribution} = 0.075 \times R338\,000 = R25\,350$$

Step 2: Determine the total deductions required to arrive at the target taxable income.
Target taxable income = R267 800
Annual income = R338 000

$$$$