Thando is not good with taxation and does not understand donations tax. Thando has asked you to help him understand and has sent you the below email: 

‘Good Afternoon, I hope you are well. I am expecting a donation in excess of R200 000 and I would like to find out who is responsible for paying donation tax, and whether I could get into trouble for not paying donation tax? In addition, as a micro business owner, I would like to know whether I qualify for turnover tax. Currently, my business turns a profit of R1 000 000 per annum. Are you able to provide me with some tax insight on when a micro business is eligible for turnover tax? Thanks a million, Thando’

1 Determine who is responsible for paying donation tax and what the consequences are for not paying donation tax? (12 marks)

2 Explain to Thando what the requirements are for a micro business to qualify for turnover tax. (15 marks)