Question $4(20$ Marks$)$

Tendai, a budding young entrepreneur from Kimberly started a new business on $1$ March $2023.$ His turnover $($cash receipts$)$

for the year of assessment ended $28$ February $2024$ amounted to R$620000.$ His business qualifies as a microbusiness and

is registered as such.

As at $29$ February $2024,$ a debtor still owes him an amount of R$16000.$ On $1$ April $2023,$ he converted his garage into a

business premises at a cost of R$55000.$ The garage made up $15\%$ of the total area of his primary residence. The primary

residence was purchased in $2018$ for R$850000.$ After six months in business, the business was flourishing and Tendai

needed a bigger place and thus decided to sell the property on $30$ September $2023$ for R$1300000.$ The portion of the

proceeds $($from the sale of the house$)$ that relate to the converted garage amounted to R$220000.$

Tendai also replaced an old oven with a new state$-$of$-$the art industrial oven machine. He sold the old oven for R$10000$ and

made a capital gain of R$3000$ on the sale.

Required:

$4\mathrm{.}1.$ Determine Tendai$$s turnover tax for the $2024$ year of assessment. Show all workings$/$calculations $(14$ marks$)$

$4\mathrm{.}2.$ Should Tendai decide to deregister voluntarily as a micro business, explain the process in terms of

paragraphs $9$ and $10$ of the Sixth Schedule.

$(3$ marks$)$

$4\mathrm{.}3.$ Should Tendai$$s business exceed a turnover of R$1$ million by the end of December $2023,$ briefly discuss

the process of compulsory deregistration.