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QUESTION 4 (10 marks) Morne Janties, a resident of South Africa, is a shareholder at a local company. GoGlobal Limited ('GoGlobal'). The board of GoGlobal decided to buy back a portion of the company's issued shares. Although this share buyback option was given to all the shareholders, only Morne Jantjies opted to take up the offer. Further details of the share buyback are as follows: - In 2009, Mome Jantjies purchased 25% of GoGlobal's shares at a cost of R43 000 . - GoGlobal offered Morne Jantjies R85 000 for the full repurchase of his shares. - R38 000 of the R85 000 reduced GoGlobal's contributed tax capital. REQUIRED: Calculate all the tax implications of the share buyback transaction for Mome Jantjies. (10 marks) Competency Framework Reference: \begin{tabular}{|l|l|} \hline C8.1 & Tax implications for selected aspects of decision-making \\ \hline b) & \begin{tabular}{l} Explain and calculate the taxation implications of returns to investors for \\ the business and the investor. \end{tabular} \\ \hline E1.3 & Application of tax legislation to calculate tax obligation \\ \hline a) & Analyse the taxpayer's tax profile. \\ \hline c) & \begin{tabular}{l} Apply the relevant law to the facts, determine the tax position and compute \\ the tax payable (VAT or normal tax) for individuals and companies. \end{tabular} \\ \hline Y3 & Problem-solving \\ \hline a) & Use a questioning mindset during problem identification and analysis. \\ \hline \end{tabular}

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