QUESTION $1$

$[22$ MARKS$]$

BN Ltd is a packaging business. All amounts are Vat inclusive, where applicable. The following information relates to the $2-$month tax period of August and September $2022.$

$\backslash$table$[[$INCOME$,],[$Sales$,865000],[$Sales: Australia,$125000],[$Rent received: Residential supply,$14000],[$Interest received,$22000],[$Fee from consulting service,$15675],[$EXPENSES$,25000],[$Wages$,18000],[$Petrol$,42000],[$Bad debts,$36000],[$Telephone$,24000],[$Water and Electricity,$150000],[$Importation of good from Zimbabwe,$6000],[$Customs Duty,$65000],[$Purchase of factory building from non$-$vendor,$115000],[$Purchase of raw material,$2000],[$Purchase of water bottles,$186500],[$Cost of new motor car for general use in business,$],[,]]$

Calculate the VAT payable or refundable for the period of August and September $2022.$

$($Note: IF VAT IS NOT APPLICABLE, PLEASE PROVIDE REASONS$)$

Round off to two $(2)$ decimal places.

QUESTION $2$

$[8$ MARKS$]$

$2\mathrm{.}1$ Discuss the following:

To whom is the deduction of annuities allowed and what are the conditions that need to be met.

$(5)$

$2\mathrm{.}2$ Calculate a S$18$A deduction for the $2023$ year of assessment if $B$ Ltd donated $R8000.$ Taxable Income is R$75000.$

$(3)$