Case laws: Gross income

Question 1

What is the gross income definition?

Answer 1

Section 1 of the Income Tax Act:
* Total amount in cash or otherwise
* Received by / accrued to / in favour of
* A resident / non-resident
* During a year of assessment
* Excluding receipts and accruals of a capital nature

Question 2

Cohen v CIR

Answer 2

his ordinary residence would be the country to which he would ‘naturally and as a matter of course return from his wanderings’; as contrasted with other lands it might be called his ‘usual or principle residence’ and it would be described more aptly than other countries as his ‘real home’.

Question 3

CIR v Kuttel

Answer 3

the natural and ordinary meaning of ordinary resident was that a person must be ‘habitually and normally’ resident here, ‘apart from temporary or occasional absences of long or short duration’.

Question 4

Levene v IRC

Answer 4

residence on place with some ‘degree of continuity’, apart from accidental or temporary absences.