Week 2 - Received By/Accrued To Flashcards
gross income definition?
- total amt received in cash or otherwise
- received or accrued to
- res = from anywhere
- non-res = SA source
- other than rec/acc of a capital nature
onus to establish monetary amount?
on SARS
total amount?
- not only money
- every form of property earned by taxpayer, even intangibles
- if paid via non-money, include market value of asset
in cash or otherwise?
- an item must have an ascertainable monetary value in cash or otherwise to be incl. in GI
what is notional amount?
something that is not real; not taxed
life rights in a retirement village example
- int-free loan
- int saved would be incl in GI, not deposits as they would be repaid later
how to be received by?
- received for his own benefit and on his own behalf
- must have intended to receive it for own b and b
loans in gross income?
not included bc immediately repayable
deposits in gross income?
included bc can use for own benefit, can claim deduction later
what is usufruct?
right to use an asset
what is bare dominium?
right to own an asset
gift cards in gross income?
not received for their own benefit, had fiduciary duty to hold the funds for the cardholder (only include revenue in GI when redeemed/expired)
accrued to?
- taxpayer is unconditionally entitled to the amt
- amount is included into gross inc at the earlier of accrual and receipt
obligation to pay the amount over to a third party?
- not incl ONLY if legal obl
- if moral = incl
if a taxpayer becomes entitled to an amt payable in the future?
the face value of the amt / market value of asset is treated as the accrual value
