QUESTION Games (Pty) Ltd (Games), a Namibian resident company, manufactures rugby balls for the African market. The company have been awarded a contract by the International Rugby Board (IRB) to supply rugby balls for the rugby world cup in 2023 as well as the lead up thereto. The company is not registered as a manufacturer in Namibia. Games has a 31 March year end. Below is the companys Profit or Loss statement for the year ended 31 March 2023: Note N$ Sales 15 000 000 Less Cost of Sales 1 (7 000 000) Gross profit 8 000 000 Less Expenses: Staff costs (2 540 000) Repairs and maintenance 2 (746 000) Electricity (42 000) Interest expense (1 000 000) Other expenses 3 (642 000) Net profit before tax 3 030 000 Notes: 1. Cost of sales: Opening stock N$3 660 000 Purchases N$9 200 000 Closing stock N$5 860 000 2. All repairs and maintenance are tax deductible. 3. Other expenses includes the following: Write-off of small tools N$3 000 Use of patent N$500 000 The use of patent was obtained from Adidas Germany in order to produce the rugby balls. The following transactions have not been recorded for the year and are not included in the profit before tax amount. 4. The company had to retool its factories and expand. They acquired the following machines (B, C and D) from Adidas. Machine A was an existing machine, acquired at a cost of N$120 000 on 1 June 2021 which was damaged during a strike and was sold as scrap on 31 December 2022 for N$80 000. It was at this point that the company decided to purchase new machines. Wear and Tear allowance was claimed on this machine Details of Machines B, C and D are below: Machine B Machine C Machine D Acquisition date 1 October 2020 1 February 2021 1 March 2021 Brought into use date 1 February 2021 1 April 2021 Same as above Cost N$1 500 000 N$2 000 000 N$2 000 000 All machines qualify for the section 17(1)(e) Wear and Tear allowance. 5. As part of the expansion plans, the company has to expand their current premises (Building A) in the Northern Industrial area. These premises were erected by the company and brought into use on 1 April 2019 at a total cost of N$12 million. The expansion project undertaken during the current year includes the following: (a) Repainted the exterior of the building at a cost of N$50 000. (b) Replaced the roof due to leaking at a total cost of N$620 000 6. The company also purchased land in the Brakwater area at a cost of N$1 000 000 on 1 April 2021 and was financed by a loan from the Development bank of Namibia (DBN). DBN financed the purchase 100% at an interest rate of 11% per annum. 7. The company entered into a lease agreement for the lease of a Building (B) on 1 August 2022. In terms of the lease agreement, the building was to be improved by Games at cost of N$1 000 000. The company spent N$1 100 000 for all the improvements effected. The company occupied the building after the improvements were completed on 1 September 2022 and began manufacturing on that date. The building was used 90% for the factory and 10% was allocated to offices. The lease period is for 20 years and the monthly rental would be N$50 000. 8. The company made provisional tax payments of N$560 000 relating the 2023 year of assessment. REQUIRED: Calculate the normal tax liability of Games (Pty) Ltd for the 2023 year of assessment. Start your calculation with the Net profit before tax. Show all workings