Please enable JavaScript.
Coggle requires JavaScript to display documents.
Special Inclusions into GI - Coggle Diagram
Special Inclusions
into GI
Par(a) :Annuities
Characteristics of an annuity
A
contractual obligation
for someone to pay
A
fixed
or
determinable
amount
Annually
or
more frequently
for a
specific period
Hogan
:<3:
An annuity constitutes gross income
check if it meets the characteristics of an annuity
"Any amount received or accrued by way of an annuity, including any amount contemplated in the definition of an annuity amount in section 10A(1)
Par(b): Alimony
Person receiving
Included in Gross Income, but
exempt
ito s10(1)(u)
Par(c): Services rendered
Voluntary awards
are part of GI even if not stipulated in service contract
Stevens vs SARS
:<3:
Receipts directly related to services rendered will fall within the ambit of par(c) inclusion in gross income
if there is a
casual relationship between the payment and employment, it will be gross income
all
amounts
received i.r.o services rendered are deemed to be GI (bonuses, tips & rewards)
shall be taxed in the hands of those who render the service
An
Amount
is an ascertainable money value
CIR v Butcher Bros (Pty) Ltd
:<3:
The onus is on SARS to determine the amount
if amount can't be established then it can't be included in GI
Par (cA) and (cB): Restraint of trade
Include any amount received or accrued as compensation for any restraint of trade imposed on any natural person in respect of employment
entire amount is taxed in the year it accrues
Par (D): Lump sum benefits
Amounts paid to employees by employers or institution due to change or loss of employment
even if its to the deceased
Par (F): Commutation of amounts due
exchange of employment benefits into cash
leave days substituted for cash
Par (g): Lease premium
Lessor will include full amount in GI
Butcher Bros
:<3:
No third party, lessee to lessor
Par (gA): Compensation for imparting knowledge
Amount received for the use of any knowledge or information
rendering of any assistance or service in connection with knowledge or information
Par (h): Leasehold Improvements
Lessee contractually obliged to perform improvements
Lessor includes in GI
Amounts included in GI
Amount stipulated in the contract
if lessee spends more than stipulated, this will not form part of Par (h)
Lessee not contractually required to improve
Lessor doesn't include in GI
Par(jA): Proceeds from disposal of certain assets
sale of capital assets similar to trading stock
Produced
Assembled
Manufactured
No wear and tear will be claimed
Par (K): Dividends
are of a revenue nature and thus incl in GI
Par(IC): Government Bonds
Incl in GI
Par (n): Amounts deemed receipts or accrual
will intergrate with capital allowance
refer to when an allowance deducted in the past is recouped through the sale of the asset
relates to recoupments