Case laws - Gross income Flashcards
Cohen case
Ordinarily, a resident is referred to as a place where a person will return after their “wanderings”. Being ordinarily resident is not solely determined by your actions during that year of assessment.
Kuttel case
A person is ordinarily resident where he has had his usual or principal residence which may be described as his home.
Levene case
The term “ordinarily resident” connotes a residence in a place with some degree of continuity, apart from accidental or temporal absences.
Lategan case
The amount included for cash includes not only money but the value of every form of property earned by the taxpayer, for example, money deemed to be received as installments in subsequent years should be valued at its present value during the year of assessment.
Butcher Bros case
improvements to leasehold property should be included in gross income.
Brummeria Renaissance case
An amount which is an interest-free loan given in return for something , will therefore represent the total amounts in cash or otherwise
Geldenhys case
An amount received by a taxpayer on behalf of another person is not included in gross income.
Delagoa Bay cigarettes case
Illegal activities are included in gross income except for expenses prohibited by section 23(o) which involve bribes, fines and penalties, etc
People stores case
An amount does not have to be due and payable in order to be included in gross income. A taxpayer can receive a right to claim future payment during the year of assessment and it should be included in gross income during that year of assessment
Mooi case
An amount can only accrue if the has become unconditionally entitled to it.
Pyotts Ltd case
Deposits are included in gross income.
Witswatersrand Association case
income received by another person on behalf of the taxpayer is included in gross income. If you are in a principle-agent relationship, income is taxed in the principles’ name.
DEFINITION OF GROSS INCOME
- In case of any resident
- the total amount (in cash or otherwise)
- received by or accrued to
- or in favor of such resident
- in case of any person other than resident
- from a source within the Republic
- during the year of assessment
- excluding receipts or accruals of a capital nature
