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CASE LAW WhatsApp Image 2021-09-01 at 23.16.53 - Coggle Diagram
CASE LAW 
1.ANY AMOUNT IN CASH OR OTHERWISE
- LATEGAN: FACT: wine farmer entered into an agreement, he disposed of wine he had made during year of assessment. A portion of SP was paid prior to the end of year and balance was too be paid. PRINCIPLE: the word amount must be given a wider definition
2.BRUMMERIA: FACT: the tp companies developed retirement villages and sold life rights to old people,. PRINCIPLE: an amount does not have to be turned into money.*
- BUTCHER BROS: FACT: the tp owned a land, leased it to a company. In terms of the lease agreement, the lessee was obliged to make improvements. PRINCIPLE:*The word “amount” refers to amount with a determinable value
3.A RESIDENT TAXPAYER
1.COHEN :FACT:A tp owned a flat in Joburg, moved overseas for work for 2 years and leased his flat . PRINCIPLE :a person is an ordinary resident in a country in which he intends to return from al his wonderings
2.KUTTEL:FACT: a tp emigrated to America and started his life there, he only returned to SA to pursue business interest. PRINCIPLE:A person is an ordinary resident where the person is habitually and normally resident.
- DURING A PERIOD OF ASSESSMENT
2.VISSER: FACT: tp was offered interest in company to be formed if he would refrain from taking up options in competition. PRINCIPLE: tree vs fruit
3.NEL: FACT: a tp sold krugerrands years ago to buy the wife a car. PRINCIPLE: Kruger rands are of capital in nature.
- GEORGE FOREST TIMBER: FACT: tp company carried on a business as timber merchants and sawyer. PRINCIPLE: all assets are either classified as fixed or floating capital
- STOTT: FACT: sale of land in Natal. PRINCIPLE : Consider the taxpayer's dominant intention.
2.(a)RECEIVED
- MP FINANCE: receipts from an illegal pyramid scheme. PRINCIPLE: Illegal receipts are included in the gross income.
- DELAGOA BAY CIGARETTES: FACT: a company ran illegal lottery and used income from sale of cigarettes to pay winners
PRINCIPLE: the legality of income is irrelevant.
- GELDENHUYS: FACT : window inherited the right of used of a farm while her children received right of ownership. she then sold the sheep. PRINCIPLE : the amount is only included in GI by a tp if its received on his behalf.
- PYOTT: FACT; biscuit manufacture treated proceeds from tin of biscuits as a deposit and not income. PRINCIPLE:: deposits are revenue in nature.
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