Question 3 [15 Marks] Manic Shilumbu is a Namibian resident. Manic started a business as a...

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Question 3 [15 Marks] Manic Shilumbu is a Namibian resident. Manic started a business as a sole proprietor in 1996 with the intention of buying and selling land. In its first few years Manic had a number of successful land-dealing transactions. His business model was to buy large portions of undeveloped land on the outskirts of residential areas. As the towns expanded and the market value of the land increased, Manic would then subdivide the land and sell plots to residential buyers at a profit. In 2000, world economies were rocked by the end of the 'dot-com bubble', with dramatic declines in the share prices of IT companies resulting in significant losses to investors on stock exchanges around the world. In Namibia, Manic noticed a significant decline in the demand for undeveloped residential land as fewer potential buyers had the money to acquire or develop new properties. At the same time, there was a corresponding increase in the demand for rental property as more people sought to rent property instead of buying. Manic therefore decided to change his business plan to focus on the rental market. In November 2001, he took a significant portion of his land off the market, and instead developed housing complexes on the land, which in turn were rented to tenants. This proved to be a successful venture, and the continued existence of his business was secured. In May 2022, Manic's daughter became engaged to be married and Manic decided to sell one of his properties to pay for the costs of the wedding, which was held in January 2023. Required: Explain whether the proceeds of the sale of the property will be included in Manic's gross income for the 2023 year of assessment. (15 marks) Question 3 [15 Marks] Manic Shilumbu is a Namibian resident. Manic started a business as a sole proprietor in 1996 with the intention of buying and selling land. In its first few years Manic had a number of successful land-dealing transactions. His business model was to buy large portions of undeveloped land on the outskirts of residential areas. As the towns expanded and the market value of the land increased, Manic would then subdivide the land and sell plots to residential buyers at a profit. In 2000, world economies were rocked by the end of the 'dot-com bubble', with dramatic declines in the share prices of IT companies resulting in significant losses to investors on stock exchanges around the world. In Namibia, Manic noticed a significant decline in the demand for undeveloped residential land as fewer potential buyers had the money to acquire or develop new properties. At the same time, there was a corresponding increase in the demand for rental property as more people sought to rent property instead of buying. Manic therefore decided to change his business plan to focus on the rental market. In November 2001, he took a significant portion of his land off the market, and instead developed housing complexes on the land, which in turn were rented to tenants. This proved to be a successful venture, and the continued existence of his business was secured. In May 2022, Manic's daughter became engaged to be married and Manic decided to sell one of his properties to pay for the costs of the wedding, which was held in January 2023. Required: Explain whether the proceeds of the sale of the property will be included in Manic's gross income for the 2023 year of assessment. (15 marks)