A South African company, House of Dragons $($HOD$)$ Pty Ltd$,$ produces and sells dragon fire sweets known as Dragon Eggs. The company is a Category A VAT Vendor. The year of assessment of the company is $30$ June.

HOD Tax Liability

Assume that the taxable income of HOD before considering the following incidences amounted to R$582,800$:

$1.$ On $12$ July $2024,$ there was a fire at the HOD warehouse. Machine A was destroyed in the fire. This pre$-$owned machine was purchased for R$475,000($including VAT$).$ The insurance company paid out R$512,500($including VAT$).$ The HOD used this money to purchase Machine B$.$

$2.$ The HOD entered into the following learnership agreements:

Agreements with $3$ learners in possession of NQF level $4$ certificates $($none were disabled and $1$ of the three completed their learnership$).$

Agreements with $3$ learners in possession of NQF level $8$ certificates $(1$ is disabled$)$

Calculate the tax liability of the HOD. Start your calculation with the taxable income

of R$582,800.$ Assume that the HOD will take advantage of all allowances and

incentives in the Income Tax Act to reduce tax liability.