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Gross Income cases - Coggle Diagram
Gross Income cases
Accrual
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Lategan
Even if an amount is payable in the future, the amount accrues to the taxpayer when the taxpayer becomes entitled to the amount.
Witwatersrand association of racing clubs
An amount accrues to a taxpayer if the amount has no legal obligation to be payed over to another person.
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Change of intention
Natal Estates Ltd
A person may realise his capital asset to his best advantage, yet must be careful not to cross the Rubicon and embark on a scheme of profit making.
Nussbaum
The secondary purpose could taint the primary purpose of a taxpayer, if a taxpayer's actions become too frequency.
John Bell
The mere decision to sell an asset does not change the intention
A capital asset may be realised at its best advantage
Founders Hill (Pty) Ltd
There has to be a real justification for the realization company to be formed. Naming of “Realization” does not constitute a realization company. By merely selling an asset through a realization company does not make the proceeds capital in nature.
The nature of an asset
Visser
Trees vs Fruits
Trees are seen as capital structure and fruits are seen as income-earning activities
George forest timber
All assets are classified as either fixed or floating capital.
Fixed capital is the structure that enables income.
Floating capital is consumed in the process of production.
Nel
Kruger rand are unique assets where the only income earned is through sale. Therefor it is normally seen as capital unless it is part of your trade.
Receipts
MP Finance group CC
A bilateral receipt that is used for your own intention means is has been received by you.
Geldenhuys
The amount is included in gross income by a taxpayer only if it is received by him or on his own behalf , for his benefit
Pyott Ltd
Generally deposits are still received and form part of gross income
It is only treated as not received if it is separately held for the benefit of the customer.
Residency
Cohen
A person is ordinarily resident in the country to which he intents to return after all his wanderings.
Kuttel
A person is ordinarily resident where the person's principle resident is, where the person is habitually and normally resident.
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Mixed / dual intention
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Nel
Kruger rand is normally seen as capital in nature unless its part of your trade. Consider the taxpayers reason for selling the Kruger Rand's
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Intention of taxpayer
Capstone
A companies intention is indicated by the persons who are in effective control of the company.
Damages and compensation
Fourie Beleggings
Compensation of damages of capital assets = Capital
Compensation for loss of profits/income = Income