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 subscriptions 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 investment in local authority bonds P5,900

Alimony for maintenance of son from former spouse P45,000

Scholarship fund received for study P39,000

Proceeds from sale of plot P370,000

Required:

1. Compute Lorato's taxable income for the tax year ended 30 June 2022. (8 marks)
2. Calculate Lorato's tax liability for the tax year. (3 marks)
3. Lorato took some loans for purchase of a house and a laptop that she uses in her business. The interest for the loan for purchasing the house was P14,500 and P3,600 for the purchase of the laptop. Explain the tax treatment of the interest on the two loans. (4 marks)