NB South African Tax

Blue Horizon Ltd, a resident company that was formed in 2009, has a 31 March financial year-end. The company distributed the following amounts/assets to its sole shareholder, Mr. Asmal, on 1 December 2022: - A cash distribution of R1 100000 ; - An in specie distribution of trading stock with a market value of R600 000 (trading stock was acquired on 1 April 2022 at a cost price of R400 000); and - An in specie distribution of a building with a market value of R1 600000 (the building was acquired on 15 June 2015 for R1 200000 - the building did not qualify for any capital allowances) - The applicable company tax rate and dividend tax rate is 28% and 20% respectively. 3 REQUIRED: 4.1 Calculate the normal tax consequences arising from the above distributions for Blue Horizon Ltd's 2023 year of assessment. (10 marks) 4.2 Calculate the amount of dividends tax that Blue Horizon Ltd. is liable for. (10 marks)