Theo Hendriks is a resident of South Africa. He is a shareholder at a local company called TrueEvolve Limited (TrueEvolve). TrueEvolve's board has decided to buy back a portion of the company's shares. Even though all shareholders were offered the buyback option, only Theo Hendriks chose to take up the offer.

Further details of the share buyback are as follows:

• In 2009, Theo Hendriks purchased 25% of TrueEvolves shares at a cost of R43 000.
• TrueEvolve offered Theo Hendriks R85 000 for the full repurchase of his shares.
• R38 000 of the R85 000 reduced TrueEvolves contributed tax capital.

REQUIRED:

Calculate all the tax implications of the share buyback transaction for Theo Hendriks.