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Gross Income - Coggle Diagram
Gross Income
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In cash or otherwise
People’s Stores: Accrued to = entitled to. Amount is included in gross income when the taxpayer becomes entitled to it, not necessarily when it is received. Accrual is based on the face value, not the discounted value. Taxed on the earlier of receipt or accrual.
Mooi: Accrued to means the taxpayer is unconditionally entitled to the amount. An amount accrues when there is an unconditional right to the amount.
Lategan: Even if an amount is payable in the future, the amount accrues to the taxpayer when the taxpayer becomes entitled to it. Once delivery has taken place, the seller becomes entitled to the full sale price.
Total amount
Butcher Bros: The onus is on SARS to determine the amount; if no amount can be determined, there will be no gross income. This court case led to the paragraph (h) gross income special inclusion. However, the principle remains that the onus is on SARS to determine the amount.
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