QUESTION 5

Tebego Mapitse is a tailor operating from a workshop she bought in June 1980 for P78,000. She is running the business as a sole trader and has a staff complement of five helpers.

She has decided to scale down her operations and serve only a handful of her loyal customers due to old age, she is turning 72 years, and as result sold her old workshop in August 2020 for P940,000 as well as selling costs of P53,000. She moved into a smaller workshop in April 2021 which she bought for P470,000.

She also sold an antiquated painting that she was keeping in the business and realised a chargeable gain of P61,000. Take NCOLI for June 1980 as 100 and for August 2020 as 2069.2.

Required

Calculate the capital gains tax payable by Tebogo, assuming no other capital transactions were carried out during 2020/21. [10 marks]