Question
The following income was earned by Lorato during the tax year ended 30 June 2022 Lump sum pension commutation P450,000 Interest earned from Botswana Building
The following income was earned by Lorato during the tax year ended 30 June 2022
Lump sum pension commutation P450,000
Interest earned from Botswana Building society Share subscription P18,000
interest from Botswana Savings Bank investment P25,000
Gross dividends from local share investments P12,000
dividends received investments in foreign shares P26,500
Proceeds from disposal of property P780,500
Interest received from investments in local authority bonds P5,900
Alimony for maintenance of son from former spouse P45,000
Scholarship fund received for study P39,000
Proceed from sale of plot P370,000
a) Compute Lorato's taxable income for the tax year ended June 30 2022
b) calculate Lorato's tax liability for the tax year
c) Lorato took some loans for the purchase of a house and a laptop that she uses in her business. The interest for the loan for purchasing the house was P14,550 and p3,600 for the purchase of the laptop. Explain the tax treatment of the interest on the 2 loans
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