Barack Onyango is a cattle farmer in the South Eastern District; his farming results for the year
Question:
Barack Onyango is a cattle farmer in the South Eastern District; his farming results for the year ended 30 June 2015 were as follows:
P
Sales to the Botswana Meat Commission (BMC) 1,478,420
Purchases 1,038,010
Salaries and wages 257,617
Fencing 52,498
Vehicle expenses 81,133
Cattle feed 171,686
Construction of dam 70,643
Construction of farm buildings 84,000
Bank interest 39,209
Other information:
1. The opening stock of cattle was 438 head and the closing stock was 472 head.
2. Barack used 30 head of cattle for personal consumption.
3. Barack settled a debt with his next door neighbor by supplying him with 10 head of cattle.
4. Included in salaries and wages are drawings of P144, 000 made by Barack on which no PAYE has been deducted.
5. Barack has a farming loss brought forward from the year to 30 June 2007 of P214, 135.
6. Barack received sales commission amounting to P168, 900 and has a withholding tax credit of P8, 690.
7. Barack is a 50% partner in another business venture and his share of the partnership chargeable income is P80, 438.
8. The standard value of one head of cattle is P430.
Required:
In respect of Barack Onyango:
(i) Compute the chargeable income or loss from his farming activities in the year ended 30 June 2008.
(ii) Calculate his taxable income from all sources for the tax year ended 30 June 2015.
Expert Answer:
i Chargeable income or loss from farming activities Sales to BMC 1478420 Purchases 1038010 ... View the full answer
