Skyline Investments Limited $($Skyline Investments$)$ manufactures spare parts used in assembling aircraft and is a JSE$-$listed company with various ordinary shareholders.

During the $2024$ tax year, Skyline Investments had excess cash reserves available,

and, to preserve stock prices, management decided that it is in the best interest of the company and remaining shareholders to use these funds to buy back some of theissued shares during February $2024.$

All the shareholders were provided with the share buyback option, but only one

shareholder, Bryan Botha, a natural person, opted to take up the offer. Both Skyline

Investments and Bryan are residents of South Africa.

Additional information on the share buyback is as follows:

$$ In $2015,$ Bryan Botha purchased $12\%$ of Skyline Investment$$s shares at a cost

of R$50000.$

$$ Skyline Investments offered Bryan Botha R$100000$ for the full repurchase of his

shares.

$$ R$40000$ of the R$100000$ offered to Bryan Botha by Skyline reduced Skyline

Investment$$s contributed tax capital.

REQUIRED:

$2\mathrm{.}1$ Discuss the tax implications of the share buyback transaction for Bryan Botha for the $2024$ year of assessment. Support your answer with references to the Act and calculations