Question $3(28$ Marks$)$

John Weak is a South African resident who works as a tailor. He has not registered a company and works as a sole trader. John requires your advice in filling his tax returns. During the year ended $28$ February $2024$ John received the following income in his bank account.

$\backslash$table$[[$Income from shoe business,$230000],[$Purchase of shore repair material,$25000],[$Income: Interest earned $($note $1),1300],[$Loan received: Uncle Thabo,$100000],[$Purchase: School uniform,$12000],[$Purchase: Food,$6000],[$Purchase:Other Personal items,$25000],[$Purchase: telephone $($personal$),600],[$Purchase: Telephone $($business$),550]]$

Note $1$:

The interest income is exempt from taxation.

Required

Calculate the tax liability of John Weak for the year ended $28$ February $2024.$ If an amount is excluded then provide a reason for this. $(16$ Marks$)$

The receiver of revenue issued an assessment to John which included the R$100000$ loan as income and therefore taxable. John disagrees with this assessment, what steps can he take to challenge this decision. $(4$ marks$)$

What steps does John need to follow to lodge a notice of objection? $(5$ Marks$)$

Does John needs to register as a taxpayer? Please provide a reason for your answer $(2$ Marks$)$

Communication and clarity: $1$ Mark