QUESTION ONE $[20$ MARKS$]$

$1\mathrm{.}1$ State and explain five reasons$/$ importance of taxation in Botswana.

$1\mathrm{.}2$ Identify the five canons$/$ principles of taxation in Botswana.

$1\mathrm{.}3$ Identify any five persons$/$ Organisations that are exempt from income tax in Botswana $[5$ Marks$]$

QUESTION TWO $[20$ MARKS$]$

Mr$.$ Adam acquired a building in July $2011$ for P $950000\mathrm{.}00$ and one thousand shares in Boitumelo

Holding, a private limited company for $P500000\mathrm{.}00.$

The building was disposed of in June $2018$ for a consideration of $P1700\mathrm{.}000\mathrm{.}00.$ Mr$.$ Adams paid an

agent P $57021\mathrm{.}00$ to facilitate the sale. The same year, Mr$.$ Adam sold his shares in Boitumelo Holding

for $P2500000\mathrm{.}00$ and paid agent fees of $P82904\mathrm{.}00$ for the disposal.

Required

$2\mathrm{.}1.$ Calculate Mr$.$ Adam's total taxable again the disposals

$2\mathrm{.}2.$ Calculate the Mr$.$ Adam's tax payable on the disposals.