Bonsai (Pty) Ltd is involved in the supply of plants, koi fish, feeding products and other accessories for marine life.

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Bonsai (Pty) Ltd is involved in the supply of plants, koi fish,feeding products and other accessories for marine life. The companyhad the following income and expenses for the year of assessment: RSales 10 258 140 Less: Cost of sales (2 460 000) Gross profit 7 798140 The company also had other income which comprised of: RDividends 1 500 000 Interest income 2 900 000 1. Legal expenses
of R40 000 were paid to attorneys Kloppers and Nkwe:  R5 000 ofthe fee was for debt collection.  R15 000 related to the drawingup of a restraint of trade agreement for an employee who hadresigned to set up his own business.  R20 000 related to a disputewhen one of Bonsai (Pty) Ltd’s clients sued the company forsupplying inferior products. Kloppers and Nkwe was unsuccessful inthis dispute and was ordered to pay the client damages of R55 0002. Bonsai (Pty) Ltd pays a maintenance contractor to maintain thefour koi ponds on its premises. The maintenance contractor is paidon an annual basis. On 1 November 2020, Bonsai (Pty) Ltd paid themaintenance contractor R90 000 to maintain the koi ponds from 1November 2020 to 31 October 2022. This is the only prepaid expenseincurred by Bonsai (Pty) Ltd for its 2022 year of assessment. 3.Bonsai (Pty) Ltd paid R750 to Geoff Handyman for repairing anelectrical point that was damaged in a heavy storm. 4. Bonsai (Pty)Ltd, entered into an agreement with one of its employees whoresigned from employment on 1 March 2020. In terms of thisagreement, the ex-employee would not render her services anywherein Gauteng for a period of five years commencing on 1 March 2020.In return for not being allowed to render a service for a period offive years, the company compensated the employee by awarding herR250 000 on 1 March 2020. 5. The following bad debts were writtenoff during the year of assessment ended 31 January 2022:  Tradedebtors (note 1) = 84 000  Loan to supplier (note 2) = 120 000 Thefollowing bad debts were written off during the previous year ofassessment and were recouped during the year of assessment ended 31January 2022  Trade debtors = 50 000  Investment in PyramidScheme = 50 000 (The liquidators paid 5c for each rand invested) 5000. Notes: Note 1 The accounting provision (according to list) fordoubtful debts amounted to R190 000 on 31 January 2020 (consistingof R150 000 for trade debtors and R40 000 for a loan to an employee(Elsie Bent)), and R220 000 on 31 January 2022 (consisting of R180000 for trade debtors and R40 000 for a loan to an employee (ElsieBent)). Note 2 The loan was granted to relieve the financialdifficulties of the supplier. The company is not in the business ofproviding loans. 6. On 5 January 2022, the company granted 3 000shares to each and every one of its 90 permanent employees at aconsideration of R0,50 a share. These shares have a nominal valueof R1 each. Their market value was R5 a share on the date that thegrants were approved. No restrictions apply to these shares. Theplan in terms of which the shares were issued by the companyqualifies as a broad-based employee share plan in terms of section8B. 7. The company paid the following annuities to formeremployees:  R45 000 to an ex-employee who retired due to old ageduring the current year of assessment  R20 000 for the next tenyears to the dependants of an ex-employee (who had died in a motorvehicle accident when delivering toys to a client). 8. The companyentered into registered learnership agreements with Arnold Mullerand Bianca du Plessis. The learnership agreements fulfil all thecriteria of section 12H.  Arnold Muller On 1 October 2020, thecompany employed Arnold Muller as a “learner” on a full-time basis,with a level 6 NQF qualification. In terms of the registeredlearnership agreement, the learnership will be completed after twoyears.  Bianca du Plessis On 1 July 2020, the company employedBianca du Plessis (a disabled person as defined in the EmploymentEquity Act 55 of 1998) as a “learner” on a part-time basis, with alevel 7 NQF qualification. In terms of the registered learnershipagreement, the learnership will be completed after six months (26weeks). 9. Trading stock:  Purchases of trading stock of R2 500000 were acquired during the year of assessment and the openingstock and closing stock was R1 340 000 and R1 380 000. 10. Some ofthe Raw materials for manufacturing are imported from Italy. Thecompany purchased stock for €62 500 on 1 October 2019. Thematerials were delivered to the company on the 31st of December2020. The customs duty value on entering the country was R62 000and the import duties were R18 000. The purchase of the stock wassettled in full on the 31st of March 2020.  Assume that the sotrates of the relevant dates are as follows: 01 October 2019€1=R18.70 31 January 2020 €1=R20.80 31 March 2020 €1=R10.40 11. Thecompany had an assessed loss of R 240 000 from the 2020 year ofassessment 12. The following donations were made during the currentyear of assessment:  Non-public benefit organisation = R120 000 Public benefit organisation = R170 000 YOU ARE REQUIRED TO:Calculate the normal tax liability of Bonsai (Pty) Ltd for its yearof assessment ending 31 January 2022.