Max Khumalo, a budding young entrepreneur, started a new business on 1 March 2022, selling savouries and biscuits. His turnover (cash receipts) for the year of assessment ended 28 February 2023 amounted to R695000. His business qualifies as a microbusiness and is registered as such. As at 28 February 2023, a debtor still owes him an amount of R17 000. On 1 April 2022, he converted his garage into a business premises at a cost of R60000. The garage made up 15% of the total area of his primary residence. The primary residence was purchased in 2014 for R950 000. After six months in business, the business was flourishing and Max needed a bigger place and thus decided to sell the property on 15 September 2022 for R1 200000 . The portion of the proceeds (from the sale of the house) that relate to the converted garage amounted to R205 000 . Max also replaced an old oven with a new state-of-the art industrial oven machine. He sold the old oven for R8 000 and made a capital gain of R2 000 on the sale. REQUIRED: 4.1 Determine Max's turnover tax for the 2023 year of assessment. show all workings/calculations 4.2 Should Max decide to deregister voluntarily as a micro business, explain the process in terms of paragraphs 9 and 10 of the Sixth Schedule. 4.3 Should Max's business exceed a turnover of R1 million by the end of December 2022, briefly discuss the process of compulsory deregistration. (3) Appendix Turnover tax table: 2023 (1 March 2022 - 28 February 2023) Max Khumalo, a budding young entrepreneur, started a new business on 1 March 2022, selling savouries and biscuits. His turnover (cash receipts) for the year of assessment ended 28 February 2023 amounted to R695000. His business qualifies as a microbusiness and is registered as such. As at 28 February 2023, a debtor still owes him an amount of R17 000. On 1 April 2022, he converted his garage into a business premises at a cost of R60000. The garage made up 15% of the total area of his primary residence. The primary residence was purchased in 2014 for R950 000. After six months in business, the business was flourishing and Max needed a bigger place and thus decided to sell the property on 15 September 2022 for R1 200000 . The portion of the proceeds (from the sale of the house) that relate to the converted garage amounted to R205 000 . Max also replaced an old oven with a new state-of-the art industrial oven machine. He sold the old oven for R8 000 and made a capital gain of R2 000 on the sale. REQUIRED: 4.1 Determine Max's turnover tax for the 2023 year of assessment. show all workings/calculations 4.2 Should Max decide to deregister voluntarily as a micro business, explain the process in terms of paragraphs 9 and 10 of the Sixth Schedule. 4.3 Should Max's business exceed a turnover of R1 million by the end of December 2022, briefly discuss the process of compulsory deregistration. (3) Appendix Turnover tax table: 2023 (1 March 2022 - 28 February 2023)
