Gross income - Total amount in cash or otherwise

Question 1

Facts:
The TP owner land, leased it to a company for 50 years with a renewal option of 49 years. In terms of the lease agreement the lessee was obliged to effect improvements. The ownership of the improvements would pass to the lessor upon termination or renewal.

Answer 1

Butcher Bros

Issue:
The benefit will pass in the future, can an amount be determined now (upon completion of the improvements) in order to tax the lessor?

Principle:
The onus is on SARS to determine the amount.
If there is no amount then there is no GI.

Question 2

Facts:
The TP companies developed retirement villages and sold life rights in the dwelling units to old age people (i.e. the old people can stay there until death).
In return for the life right, the pensioner had to make an interest free loan to the developer.

Answer 2

Brummeria

Issue:
Does the fact of having monies available (i.e. interest-free loans) mean that there is an “amount” accruing to the developer?

Principle:
Receipt/accrual can be in any other form except money and still have monetary value.