?Thanda Zulu

Last month Thanda Zulu sold his business $$lock$,$ ?stock and barrel$($in its entirety$)$ ?to Royals Limited. He had been trading as a sole trader. He sold all his business assets to it$.$ ?He had been keen to sell for some time. He originally wanted R$1000000$ ?for his business, but settled for a selling price of R$600000,$ ?payable on the date of the sale agreement and an amount equal to $30\%$ ?of the net after tax income of his former business for each of its next three years of assessments. Should it achieve its budgeted results, the total amount that he will receive will be R$1000000.$

Determine and discuss the amount to be included in Thanda Zulu$$s $2016$ ?to $2019$ ?gross income as a result of him selling his business. $(5)$

Maggie Hirsch

On $26$ ?February $2019$ ?Maggie Hirsch, a dealer in property, agreed to sell a country estate $($a property$)$ ?to his $$out of wedlock$$ ?child, Nelly Tailor, for its market value of R$1000000.($Maggie Hirsch, held this property as part of his trading stock.$)$ ?The purchase and sale agreement provided for

$$ ?An initial amount of R$40000$ ?to be paid immediately, and

$12$ ?annual instalments of R$80000$ ?each.

Nelly$$s mother paid the R$40000$ ?on Nelly$$s behalf $11$ ?days after it was due, this being on $07$ ?March $2019.$

Indicate in which year or years of assessment the amounts in question may be said to have $$accrued$$ ?to the various taxpayers. Brief reasons should be furnished to support your answer.$(5)$

Mike Jaddoo

Mike Jaddoo presented $$magic$$ ?performances in South Africa in February $2019.$ ?He presented $10$ ?performances up to and including one on $29$ ?February $2019$ ?and was paid R$5000$ ?for each performance. Part of each performance is to pick pocket a R$200$ ?note from a member of the audience. This R$200$ ?note he keeps until the following day when he approaches his $$victim$$ ?and bets R$200$ ?that the victim will be given R$200$ ?within three minutes. Although Mike has performed this trick for $18$ ?years throughout South Africa and the rest of the world all his victims accept the bet. At the point in time he produces the R$200$ ?note that he had stolen that night before from $$his$$ ?victim and gives it back to him.

Mike therefore wins the bet. As a result he keeps the R$200$ ?he would otherwise have had to return.

Indicate in which year or years of assessment the amounts in question may be said to have $$accrued$$ ?to the various taxpayers. Brief reasons should be furnished to support your answer.$(5)$

Ajay Saanta

Ajay Saanta is employed in Spain by the South African Government as a translator. He is not a resident of South Africa. Each year he works for,

$10$ ?months in Spain

$$ ?One month in South Africa

$$ ?The twelfth month is his annual vacation.

This year he spent his annual vacation in North America.

Discuss the normal tax consequences of the salary he earns from the South African Government. $(5)$