The first question is 43 Marks, kindly please include all calculations as requested by the question.

Question 1 (43 marks) 1.1 Alen is a sole proprietor who has been running his business for the past few years. Alen has decided to donate money to his two brothers (Charlie and Jake) and his sister, Chelsea. He subsequently donates R30 000 to Charlie, R42 000 to Jake and R200 000 to Chelsea. Alen believes that that these donations will not be subject to donation tax as each donation is below R100 000 exemption in terms of s56(2) (b) of the Income Tax Act 58 of 1962. He has approached you to confirm if he will be entitled to first R100 000 exemption of the donations made in terms of S56(2)(b) of the Income Tax Act and if there will be any donation tax for each of the above transactions. Show all calculations. (15 marks) 1.2 Alen sold his primary residence that is situated in Cape Town for an amount of R7 000 000. His total base cost is made of the following expenditures: PurchasecostTransfercostsSellingcostsAgentfeesR2000000R75000R120000R115000 Required. Calculate the taxable capital gain for Alen during the year of assessment. show your calculations. (14 marks) 1.3 Alen's business is currently making taxable supplies amounting to R420 000 per annum. After selling his primary residence (in question 1.2), he believes that he must register for VAT as it is compulsory so that he will be able to claim input tax. Required. Advise Alen if he is required by SARS to registered for VAT based on the transactions mentioned above. (14 marks) Question 2 (10 marks) Soyani Mvula (Pty) Ltd is small business owner that sell cellphones and sim cards to his customers. Soyani displays 10 new ranges of demo cellphones for advertising purposes to attract more customers. A few months later, Soyani decides to sell the demo cellphone at a lower cost, however, he does not believe that this will be part of his trading stock as he used these demo cellphones for advertising purposes. Required Briefly explain trading stock to Soyani Mvula (Pty) Ltd and advise him if the demo cellphones will be included in Soyani Mvula (Pty) Ltd their trading stock. (10 marks) Question 3 (20 marks) Nothile Zibu is the owner of Zi eN Pty Ltd and she purchased trading stock in year 1 at a cost of R364 000. Nothile did not make any sale during year 1 , she then sold trading stock for R500 000 in year 2 and was only allowed to claim up to R250 000 of the cost in year 2 , the remaining balance will only be claimed in year 3 . Required: You are qualified tax advisor and Nothile has asked you to advise on the tax consequences for the above years of assessment. Show all your calculations and mention all the applicable Acts/Sections that relates to the figures. (20 marks) Question 4 (20 marks) Kaizer Jnr is a sole trader with a turnover of R1 750000 for the current year of assessment (included in the R1 750000 is a capital gain of R550 000 from the sale of manufacturing machine). Kaizer Jnr has asked you to advise on whether he will qualify for turnover tax as he believes that he should be classified as a micro business. Question 1 (43 marks) 1.1 Alen is a sole proprietor who has been running his business for the past few years. Alen has decided to donate money to his two brothers (Charlie and Jake) and his sister, Chelsea. He subsequently donates R30 000 to Charlie, R42 000 to Jake and R200 000 to Chelsea. Alen believes that that these donations will not be subject to donation tax as each donation is below R100 000 exemption in terms of s56(2) (b) of the Income Tax Act 58 of 1962. He has approached you to confirm if he will be entitled to first R100 000 exemption of the donations made in terms of S56(2)(b) of the Income Tax Act and if there will be any donation tax for each of the above transactions. Show all calculations. (15 marks) 1.2 Alen sold his primary residence that is situated in Cape Town for an amount of R7 000 000. His total base cost is made of the following expenditures: PurchasecostTransfercostsSellingcostsAgentfeesR2000000R75000R120000R115000 Required. Calculate the taxable capital gain for Alen during the year of assessment. show your calculations. (14 marks) 1.3 Alen's business is currently making taxable supplies amounting to R420 000 per annum. After selling his primary residence (in question 1.2), he believes that he must register for VAT as it is compulsory so that he will be able to claim input tax. Required. Advise Alen if he is required by SARS to registered for VAT based on the transactions mentioned above. (14 marks) Question 2 (10 marks) Soyani Mvula (Pty) Ltd is small business owner that sell cellphones and sim cards to his customers. Soyani displays 10 new ranges of demo cellphones for advertising purposes to attract more customers. A few months later, Soyani decides to sell the demo cellphone at a lower cost, however, he does not believe that this will be part of his trading stock as he used these demo cellphones for advertising purposes. Required Briefly explain trading stock to Soyani Mvula (Pty) Ltd and advise him if the demo cellphones will be included in Soyani Mvula (Pty) Ltd their trading stock. (10 marks) Question 3 (20 marks) Nothile Zibu is the owner of Zi eN Pty Ltd and she purchased trading stock in year 1 at a cost of R364 000. Nothile did not make any sale during year 1 , she then sold trading stock for R500 000 in year 2 and was only allowed to claim up to R250 000 of the cost in year 2 , the remaining balance will only be claimed in year 3 . Required: You are qualified tax advisor and Nothile has asked you to advise on the tax consequences for the above years of assessment. Show all your calculations and mention all the applicable Acts/Sections that relates to the figures. (20 marks) Question 4 (20 marks) Kaizer Jnr is a sole trader with a turnover of R1 750000 for the current year of assessment (included in the R1 750000 is a capital gain of R550 000 from the sale of manufacturing machine). Kaizer Jnr has asked you to advise on whether he will qualify for turnover tax as he believes that he should be classified as a micro business