QUESTION 3 (25 Marks)

3.1 Define Turnover Tax and state what receipts DO NOT QUALIFY for turnover tax? (5 Marks)

3.2 State which persons are specifically excluded from a Micro business? (5 Marks)

3.3 ABCD Limited started a business to manufacture plastics on 1 April 2021.It was registered on 1 April 2021 On 30 August 2021, they sold the old machine and replaced it with a new one. The company received R150 000 as proceeds. The turnover for the year ended 28 February 2022, is R865 000 (excluding the proceeds from the above sale) Does ABCD Limited qualify for turnover tax? (5 Marks)

3.4 Albert (55 years old) is a sole proprietor. He qualified and registered as a micro business.

Cash receipts for the year ended 28 February 2022 amounted to R650 000.

A debtor owed Albert R25 000 for goods bought on 22 February 2022

Interest income earned R15 000 for the year ended 28 February 2022

He sold an old oven (built-in) that he uses in his business for a capital amount of R32 000 from the sale of the machine? Calculate Alberts turnover tax for the 2022 year of assessment? (10 Marks)