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Capital or revenue in nature - Coggle Diagram
Capital or revenue in nature
Natal estates Ltd
Something more is needed to prove that there was a change in intention
Eg a series of actions
The TP has to cross the rubicon
Niko
When a business is sold, each of its components will be assessed seperately to be capital or revenue in anture
John bell & co
The sale of an asset for profit is not indicative of intention change/ motive for profit making scheme
Stot
Assets may be realised to its best advantage
We take the taxpayers intention at the time of purchase, disposal and time in between to determine whether its sale is capital or revenure in nature
For revenue in nature there has to be a profit making intention/ scheme
Elandsheuwel farming
Decision to sell is not indicative of a chage in intention
PnP Eployee share purchase trust
For something to be classified as revenue in nature there has to be a sheme of profit making
If not its assumed as capital in nature
:
Visser
Income is what capital prodices
Fruit and tree analysis
George Forsett Timber
Fixed vs Floating capital
Machinery vs merchandise
Fixed capital are capital in nature
Floating capita are revenure in nature
Levy vs Cott
With mixed intentions, the dominant intention is followed.
If no dominant intention is found, we assumerevenue in nature
Richmond estate
Intention of a non natural person is determined by the actions of the directors
