1. Mr Gumbo reared 250 heads of cattle and 180 sheep and goats combined during the tax year ended 30 June 2015. He disposed off 25 heads of cattle and 30 sheep and goats during the tax year. The market price of his aggregate disposal was P57, 500. Required: Determine whether Mr Gumbo is chargeable on his farming operations for the 2015 tax year.

State five conditions that must be satisfied before an input tax credit can be claimed for the purposes of value added tax (VAT).

Discuss the purpose and function of taxation in a modern economy.

Briefly explain the conditions that must be satisfied for a tax payer to claim holdover or rollover relief on disposal of immovable property.

Explain the tax treatment of farming losses, business loses and capital losses. 6. Discuss any two badges of trade or indication of trade used to determine whether income received is taxable or not.