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TAX > Gross Income Court Cases > Flashcards

Gross Income Court Cases Flashcards

0
Q

Brummeria Renaissance

A

Total amount cash and other wise

Amount can still have a value even if it can’t be turned into money
Quid-pro-quo - interest free loan
Notional interest still taxable

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1
Q

Butcher bros

A

Total amount cash and other wise

Onus of determining value vests on SARS.
Par g: premium

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2
Q

Lategan

A

Total amount cash and otherwise

Amount is not limited to money, but every form of property earned

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3
Q

Geldenhuys

A

Received by

On own behalf
Bare Dominium vs. usufructuary

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4
Q

Pyott

A

Received by

A deposit received and placed in a separate trust account is not taxable.

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5
Q

Genn & Co

A

Received by

Same moment borrower gives possession, he falls under obligation to pay

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6
Q

Delagoa Bay Cigarettes

A

Received by

Source of income (legal or illegal) doesn’t matter

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7
Q

MP Finance group

A

Received by

Illegal income = gross income if TP has intention to receive for own benefit

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8
Q

People Stores

A

Accrued to

Right future payment
“Entitled to”

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9
Q

Mooi

A

Accrued to

“Unconditionally entitled to”

Suspensive vs. resolutive condition

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10
Q

Cactus investment

A

Accrued to

Reciprocal contracts
TP only becomes entitled once he has completed his duties.
eg: seller must deliver goods.

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11
Q

GUD holdings ltd

A

Accrued to

“Early settlement discount”
Only taxed on amount unconditionally entitled to

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12
Q

Ochberg

A

Accrued to

Whether the TP benefited from the transaction is not relevant

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13
Q

Witwatersrand association of racing clubs

A

Disposal after accrual

Mere moral obligation to donate proceeds is irrelevant
Received by/ accrued to -> will be taxed

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14
Q

Silverglen investments

A

During YOA

always earlier of receipt or accrual

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15
Q

Visser

A

Capital nature

Fruit and tree principle

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16
Q

Pick n’ pay employee trust

A

Scheme of profit making

17
Q

Stephan

A

Scheme of profit making

Once of transaction can be revenue nature because motive was to make profit.

18
Q

Subjective test

A

Ipse Dixit

  • intention
  • change in intention
  • mixed intention
19
Q

Objective factors

A
  • manner of acquisition
  • manner of disposal
  • period asset was help
  • continuity
  • occupation of TP
  • nature of asset
  • activity after sale
20
Q

Levy

A

Mixed intentions

2 possible motives when buying->selling asset
Revenue = default

21
Q

Stott

A

Mixed intentions

Mere fact that asset was sold at a profit does not indicate a change in intention

22
Q

Natal estates

A

Change in intention

Crossed the rubicon

23
Q

Richmond estates

A

Change in intention

Decision to sell asset at profit does not make it revenue in nature

24
Q

John Bell & Co

A

Change in intention

Something more is required …

25
Q

Nussbaum

A

Change in intention

Secondary purpose of TP could taint primary purpose
Replaced levy

26
Q

Berea West estate

A

Using a realization company

Must only be a realization company and not a company trading for profit

27
Q

Founders hill

A

Using a realization company

Found to be capital in nature

28
Q

George Forest Timber

A

Nature of asset

Fixed vs floating capital

29
Q

Nel

A

Nature of asset

Buying Kruger rands to hedge inflation
= capital

30
Q

Ernst Bester trust

A

Nature of asset

Mining soil from land = revenue

31
Q

WJ Fourie belaggings

A

Damages and compensation

Damages for cancelation of contract by tenant = Revenue
“income earning operation”

32
Q

Stellenbosch Farmers’ winery

A

Damages and compensation

Damages paid for loss of income producing structure = Capital nature

33
Q

Court cases under:

Total amount, cash and otherwise

A

Butcher bros
Brummeria Renaissance
Lategan

34
Q

Court cases under:

Received by:

A 
Geldenuys 
Pyott ltd 
Gene & co 
Delagoa Bay Cigarettes 
MP Finance group
35
Q

Court cases under:

Accrued to:

A 
People stores 
Mooi
Cactus Investments 
GUD Holdings ltd 
Ochberg
36
Q

Court cases under:

Disposal after accrual:

A

Witwatersrand association of racing clubs

37
Q

Court cases under:

During YOA:

A

Silverglen Investments

38
Q

Court cases under:

  • Not of capital nature
  • -Scheme of profit making
A

Pick n pay employee share trust
Elandsheuwel farming
Stephan

39
Q

Court cases under:

  • Not of capital nature
  • -mixed intention
A

Levy

Scott

40
Q

Court cases under:

  • Not of capital nature
  • -Change in intention
A

Natal estate
Richmond estates
John Bell & Co
Nussbaum

-Using a realization company:
Beria west estate
Founders hill

41
Q

Court cases under:

  • Not of capital nature
  • -Damages and compensation
A

WJ Fourie belleggings

Stellenbosch farmers winery

TAX (5 decks)

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