Gross Income Flashcards
People ‘s stores
Accurued to =entitled to
Included in gross income when entitled to not when youreceive the money
Accrual =face value not discounted value
MP finance
Even though the receipts are illegal, they are still received, and therefore they are included in gross Income
Delagoa bay cigarette
The legality of the income is irrelevant. The amount will be gross income
George forest Timber
All assets are either fixed or floating capital
Pick n Pay employee share purchase trust
The scheme of profit making is essential to classify proceeds as revenue
Natal estate Ltd
A taxpayer needs to be careful not to cross the Rubicon and embark on a scheme of profit making
Wj fourie beleggings
Compensation for damages of capital assets =capital
Compensation for loss of profit /income=in o. E
Nussbaum
The secondary purpose of a taxpayer could taint the primary purpose of a taxpayer, considering the frequency
Visser
Income is what capital produces
Tree VS fruit comparison
Richmond estate
A company’s initial intention is indicated by the actions of the director, types of business and the MOI
Cohen
A person is ordinarily resident in the country to which he intends to *return from his wandering. The Country he Regards as his real home
KUTTEL
A person is ordinarily resident where the person is habitually and normally resident.
Lategan
The word amount includes any form of property with an ascertainable monetary value, including debt and rights
Butcher bros
The onus is on Sars to determine the amount
Brummeria
The question whether a receipt or accrual in a form other than. Money has a money value is the primary question.
The test is objective and not subjective
Witwaterand association of racing clubs
Amount accues to a taxpayer if the taxpayer has no legal obligation to pay it over
Mooi
Accrued to =unconditionally entitled to the amount
Geldenhuys
The amount is only included in gross income by a taxpayer only if it is received by him on his own behalf, for his own benefits
MP finance group cc
A bilateral receipt that is used for your own intentions means it has been received by you
Pyott Ltd
Generally deposits are still received and form part of gross income
A deposit is only treated as not being received if the money is kept separately in a trust account for the benefit of the customer
Visser
Income may be described as the product person’s wits and energy
Tree VS fruits
Nel
Kruger rands are unique asset where the only income earned is through sale. Therefore it will normally be seen as capital unless it is your trade to buy and sell them
Levy
If the are mixed intention, on needs to determine the dominant intention
Elandsheuwel farming
The intention of the shareholder should be taken into consideration when assessing whether the use of the asset is capital in nature
Thus, a change in shareholding could represent a Change in intention.
Stott
Consider the taxpayer’s dominant intention. The fact that the asset is sold at a profit, does not necessarily indicate a change of intention
John bell
The mere decision to sell an asset does not change an intention. A capital asset may be realised at its best advantage
Berea west estates
The receipts of the realization company are capital In nature
Founders hill (pty) Ltd
There has to be a real justification for the realization company to be formed
By merely selling an asset through a realization company does not make the proceeds capital in nature
Stellenbosch farmers winery
Compensation for cancelation of a contract to an income earning right will be considered capital in nature
