Chapter 3: special Inclusion Deduction Flashcards
Special inclusions
Annuities characteristics
Provides for a fixed amount, payment is repetitive and chargeable against a person
Alimony you or maintenance
Chargeable in the hands of the paying spouse, exempt in the hands of the receiving spouse
Special inclusion cont…
Services rendered, all included in income
Employment: all amount received in respect of, or by virtue of any employment
Restraint of trade: capital nature unless it’s labour broker
Lump sum benefits: included in gross income
Deferred compensation and lump sum payouts
Proceeds of risk policies with no cash surrender values are not included as gross income
Special inclusion meaning
Includes amounts which, even though they fall outside the gross income definition (either because they are of a capital nature or from a non SA resident) are specifically included in gross income.
