Gross Income Flashcards
‘Amount’ - CSARS v BRUMMERIA RENAISSANCE (PTY) LTD
The taxpayer’s right to utilise loan capital interest-free (that is, the benefit for the taxpayer of using the money of another person without paying interest on it) is an ‘amount’, as this right or benefit has an ascertainable monetary value
‘Amount’ - CIR v BUTCHER BROS (PTY) LTD
A non-cash item that has an ascertainable monetary value in the year of assessment that it is to be included, will be included in gross income (assuming all other requirements of the gross income definition are met).
The onus rests upon SARS to determine an amount; that is (prove an ‘amount’ was received by or accrued to the taxpayer)
‘Amount’ - LATEGAN v CIR
Amount does not only include money (cash) but also the value of every form of property (corporeal or incorporeal) earned by the taxpayer that has a monetary value.
When a taxpayer ‘becomes entitled to’ the amount, it accrues to the taxpayer.
‘Accrued to’ - CIR v LATEGAN
When the taxpayer ‘becomes entitled to’ the amount, an amount accrues to the taxpayer, but only when entitlement is unconditional.
‘ACCRUED TO’ - CIR V PEOPLE’S STORES (PTY) LTD
When the taxpayer ‘becomes entitled to’ an amount, the amount ‘accrues’ to a taxpayer. The amount need
not be both due and payable.
‘Accrued to’ - CIR v WITWATERSRAND ASSOCIATION OF RACING CLUBS
Any amount received by (or accrued to) a taxpayer for their own benefit will be included in the gross income
of the taxpayer despite a moral obligation on the taxpayer to pay such amount to another person.
‘Accrued to’ - MOOI v SIR
When a taxpayer’s entitlement is unconditional, an amount ‘accrues’ to the taxpayer.
‘Received by’ - GELDENHUYS v CIR
For an amount to be received by the taxpayer for the purposes of the gross income definition, the amount must be received by the taxpayer for their own benefit and on their own behalf.
‘Received by’ - MP FINANCE GROUP
Thus, an amount is ‘received by’ a taxpayer if the taxpayer intended to receive the amount for the taxpayer’s
own benefit (irrespective of the fact that such amounts are illegal in nature).
‘Received by’ - PYOTT LTD v CIR
If deposits are not deposited into a separate trust account, these deposits will be included in gross income
if the taxpayer has received these deposits for its own benefit (beneficially received by taxpayer).
‘THE LEGALITY OR OTHERWISE OF THE BUSINESS PRODUCTIVE OF INCOME’
CIR V DELAGOA BAY CIGARETTE CO LTD
The source of the income, legal or illegal, is immaterial/irrelevant in determining if an amount constitutes
income. Thus, receipts (from an illegal business) will be included in gross income.
