QUESTION $4(30$ marks$)$ Client Request #$4$TsaruTsaru Investments Pty Ltd needs help on their VAT issues as their VAT returns are due at Botswana Unified Revenue Services $($BURS$)$ The following information relates to VAT transactions. The VAT Department Manager, Mr Desmond Langa who is also your line Manager, wants you to assist the client. TsaruTsaru Investments is a VAT registered entity owned by Mr Mpho Boipelo who is the only director. The company invests and owns properties in a posh suburb for residential and commercial purposes In March $2011$: $$ Bought a block of office block from Lesang Maganu who VAT is not registered valued at$$ P$2,135,000$ in cash. The valuers estimated the fair value of the property at P$2,425,000.$ The building continued to be rented as$$ an office block at fair value. $$ Another property was bought at Petlo Estates which is $65\%$ offices and $35\%$ homes or residential. The building was bought for P$3,960,000($inclusive of $10\%$VAT$).$ Monageng Valuers estimated the market value of the property at P$4,095,000.$ The property was rented at market value as offices and residential flats. $$ I.$$ Mr Boipelo is considering donating the two properties to Trust Fund for his children Chedza and Ludo who are $18$ and $19$ respectively. The beneficiaries will earn income and capital on attainment of $25$year of age. $$ II$.$ The second option he is considering is selling both the properties and investing in the Trust fund to benefit both Chedza and Ludo. Mr Frank who is a property mogul has agreed to buy both the properties at a price of P $6,148,000$ for Petlo Estates Property and the first property for P $3,981,600$ vat inclusive at $10\%$ for both the properties. Mr Frank is $$VAT registered. The proceeds will be donated for the benefit of both Chedza and Ludo. Assume the sale of properties as $31$ December $2017.$ Required: Using the above information on TsaruTsaru Investments Pty Ltd answer the following questions. a$)$Discuss the VAT and Transfer duty arising from the buying of the two properties by TsaruTsaru Investments Pty Ltd$.(9$marks$)$ b$)$ Calculate the VAT, Capital gains tax and transfer duty for the disposal of the properties to Mr Frank. $(11$ marks$)$ c$)$Discuss the implications of donating the properties to the Trust fund with calculations for each transaction showing clearly the tax liabilities under each transaction and who will be liable. $(10$ marks$)$