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THE 4 ELEMENTS OF THE DEFINITION OF GROSS INCOME - Coggle Diagram
THE 4 ELEMENTS OF THE DEFINITION OF GROSS INCOME
RESIDENCY
COURT CASES
COHEN vs CIR
THE FACTS : a tax payer owned a flat in Johannesburg moved overseas for work for two years and leased his flat
THE PRINCIPLE : a person is a ordinary resident in the country to which he intends to return from all his wanderings. The country he regards as his real home
CIR vs KUTTEL
THE PRINCIPLE: a persons is a ordinary resident where the persons principle resident is - Where the person is habitually and normally resident
TOTAL AMOUNT IN CASH OR OTHERWISE
COURT CASES
Lategen vs CIR
THE FACT: a portion of the selling price was paid prior the end of his year of assessment and the rest was paid after. THE PRINCIPLE: the word amount includes any form of property with an ascertainable monetary value, including debt and rights
CIR vs Butcher bros
THE FACTS; a taxpayer owned land and leased it for 50 years to a company and the lease agreement stated that the lessor is obliged to effect improvements PRINCIPLE: the onus is on SARS to determine the amount
SARS vs Brummeria
THE PRINCIPLE : a amount does not have to be able to be turned into money by the taxpayer to be an amount for the purpose of the gross income definition
ACCRUAL
COURT CASES
PEOPLES STORE
THE FACTS : a clothing retailer sold on credit
THE PRINCIPLE: included in the gross income when entitled to not when you receive the money
MOOI
THE PRINCIPLE : accrual means unconditionally entitled to. An amount has not accured to if it is dependent on a future event
WITWATERSRAND ASSOCIATION OF RACING CLUBS
THE FACTS: a race took place and the proceeds where divided between two charities .The taxpayer argued that the proceeds did not accrue to them PRINCIPLE ; an amount accrues to a taxpayer if the taxpayer has no legal obligation to pay it over to another person
RECEIPT
COURT CASES
Pyott Ltd
THE FACTS: a biscuit manufacturer sold tinned biscuits. The customers could return the tins and receive money for the tin so the company treated the proceeds relating to the tin as a deposit and not gross income. THE PRINCIPLE: generally deposits are stiIl received and form part of gross income
Geldnhuys
THE PRINCIPLE :the amount is only included in gross income by a taxpayer only if it is received by him on his own behalf, for his own benefit
MP FINANCE GROUP CC
THE PRINCIPLE: a bilateral receipt that is used for your own intentions means it has been received by your own benefit.