Question $3(9$ marks$)$Read the following excerpt and answer the question that follows:You are a senior tax practitioner and you oversee the work of a junior tax practitioner,Murray, who assists you. One of your clients, the Thistle Trust $($the Trust$),$ has sold aholiday house owned by it in South Africa. The Trust has two potential beneficiaries, Etheland Gilbert. Ethel is a tax resident of South Africa. Gilbert is a tax resident of Botswana.The donor is no longer alive. The base cost of the house is R$600,000\mathrm{.}00,$ and it was soldfor R$1,000,000\mathrm{.}00.$The trustees have asked you to advise them on the route to take in order to pay the leastcapital gains tax $($CGT$)$ even if it results in unequal distributions to beneficiaries. Youadvise them of the two options, namely: taxing the capital gain in the trusts name, orusing the conduit principle to distribute the capital gain. Murray prepares a calculation inthis regard and presents it to you for checking:OPTION $1$: Full capital gain taxed in the trusts name:Proceeds: R$1,000,000\mathrm{.}00$Base cost: $($R$600,000\mathrm{.}00)$Capital gain: R$400,000\mathrm{.}00$Annual exclusion: N$/$ATaxable CG $($at inclusion rate of $80\%)$: R$320,000\mathrm{.}00$Total payable if taxed at trusts income tax rate of $28\%$: R$89,600\mathrm{.}00$TOTAL PAYABLE BY TRUST: R$89,600\mathrm{.}00$OPTION $2$: Gain is distributed in equal shares to beneficiaries$2\mathrm{.}1.$ Distribution of $50\%$ gain to Ethel:$17$ HLTX$330-1-$Jan$-$Jun$2024-$SuppSA$1-$AT$-$V$1-1701202450\%$ of distributed capital gain: R$200,000\mathrm{.}00$Annual exclusion: $($R$40,000\mathrm{.}00)$Net capital gain: R$160,000\mathrm{.}00$Taxable CG $($at inclusion rate of $40\%)$: R$64,000\mathrm{.}00$Maximum payable by Ethel if taxed at individuals tax rate of $45\%$: R$28,800\mathrm{.}002\mathrm{.}2.$ Distribution of $50\%$ gain to Gilbert:$50\%$ of distributed capital gain: R$200,000\mathrm{.}00$Annual exclusion: $($R$40,000\mathrm{.}00)$Net capital gain: R$160,000\mathrm{.}00$Taxable CG $($at inclusion rate of $40\%)$: R$64,000\mathrm{.}00$Maximum payable by Gilbert if taxed at individuals tax rate of $45\%$: R$28,800\mathrm{.}00$TOTAL MAXIMUM PAYABLE FOR OPTION $2$: R$57,600\mathrm{.}00$Required:Identify the error$($s$)$ in Murrays calculation, and set out your corrected calculation.$(9$ marks$)$