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GROSS INCOME 2 (ELEMENTS) (RECEIVED OR ACCRUED: (RECEIVED OR ACCRUED: MP…
GROSS INCOME 2 (ELEMENTS)
TOTAL AMOUNT IN CASH OR OTHERWISE:
LATEGAN:red_flag:
"Amount" includes not only money but anything which has a monetary value
Ascertainable monetary value
Court decided that Lategan had become entitled to the right to claim future receipts on the date of sale therefore the total value of the sale had to be included during the year in which the sale occurs
TOTAL AMOUNT IN CASH OR OTHERWISE:
BUTCHER BROS :red_flag: "amount" refers to an amount with a determinable value; commissioner must determine the amount
TOTAL AMOUNT IN CASH OR OTHERWISE:
BRUMMERIA :red_flag: amount does not have to be able to be turned into money by the TP to be an amount, but merley has to be in the form of an asset which could be turned into money is it was sold
E.g: Brummeria had the right to an interest-free loan which has value in money terms
TOTAL AMOUNT IN CASH OR OTHERWISE:
Lace Proprietary Mines :red_flag: In determining the amount, effect must be given to the true intention of the parties.
The true intention of the parties in terms of the contract was the consideration for the mine not the market value of shares to be exchanged
RECEIVED OR ACCRUED:
RECEIVED OR ACCRUED:
MP FINANCE :red_flag: the legality (illegality) of the receipt foes not prevent it from tax
A bilateral receipt that is used for your own intention means it has been received by
you
. You intended to use it for your own benefit
RECEIVED OR ACCRUED:
PEOPLES STORES :red_flag: accrued means become "entitled to payment" even if the amount is only due and payable in future (credit sales)
RECEIVED OR ACCRUED:
PYOTT :red_flag: deposits are included in G.I unless they are deposited into a separate trust account set up specifically for the deposits received
RECEIVED OR ACCRUED:
WITSWATERSRAND ASSOCIATION OF RACING CLUBS :red_flag: if amount has accrued to a TP and no legal obligation exists to pay it over (only moral obligation) then it has indeed accrued (part of G.I) and subsequent disposal thereof is relevant
RECEIVED OR ACCRUED:
MOOI :red_flag: "entitled to" applies when the TP becomes unconditionally entitled to the amount; amount has not accrued if it is still dependent on a future event
RECEIVED OR ACCRUED:
GELDENHUYS :red_flag: amount is received by the TP if it is received
on his own behalf or
for his own benefit
NOT OF A CAPITAL NATURE
NOT OF A CAPITAL NATURE
CIR vs VISSER :red_flag: income is the "fruit" produced by capital which is the "tree"
Income producing from fruit= G.I
Proceeds from selling the "tree'= not G.I
NOT OF A CAPITAL NATURE
RICHMOND ESTATES :red_flag: the intention of the co is determined by
resolutions of directors (formal acts)
actions of directors (informal acts)
The court will test the IPSE DIXIT to establish the intention
NOT OF A CAPITAL NATURE
PICK n PAY EMPLOYEE SHARE TRUST :red_flag: if TP participates in a scheme of profit making,the proceeds are revenue of nature and taxable as gross income
NOT OF A CAPITAL NATURE
STOOT :red_flag:
the intention of the TP at date of acquisition is crucial, unless the intention of TP changed prior sale
2.Every TP is entitled to realize such asset to his best advantage without it being considered a change in intention
NOT OF A CAPITAL NATURE
NEL :red_flag: same principles and guidlines must be applied as when other assets are sold.
Intention of the TP must be determined.
Kruger Rands are normally seen as capital unless it is your trade to buy+sell them
NOT OF A CAPITAL NATURE
NATAL ESTATES :red_flag: TP had "crossed the Rubicon" and started a scheme of profit making; change in intention results in being revenue.
FACTORS TO TEST IPXE DIXIT:
length of time the asset is held
frequency of transactions
nature of business
4.nature of asset sold