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Capital vs Revenue Principles - Coggle Diagram
Capital vs Revenue Principles
Damages and Compensation 💰
Fourie Beleggings 🏨
Principle: Filling a hole in the income earning structure is capital and filling a hole in income pocket is revenue
Nature Of The Asset 🌲
George forest timber 🪵
Principle: Fixed vs floating capital - fixed is capital and floating is revenue.
Nel 🪙
Principle: Krugerrands are normally capital but are revenue when traded.
Visser 🌳
Principle: "Tree vs fruit". Income from an asset is revenue, the asset itself is capital
Intention of the Taxpayer 🎯
Stott ⚖️
Principle: The taxpayers dominant intention must be considered, to sell at a profit does not indicate a change in intention. Taxpayer may realise an to its best advantage
Pick n Pay employee share purchase trust 📈
Principle: A scheme of profit making is required, any accidental profits remain capital.
Nel 🪙
Principle: The reason for selling determines the nature.
Company Intention 🏢
Capstone 💼
Principle: The directors of a company determine company intentions, effective control decides intention
Change of intention 🔄️
Natal Estates ltd 🌉
Principle: Something more is needed for a change in intention. To cross the Rubicon by embarking on a scheme of profit making
Nussbaum 📊
Principle: If too many frequent transaction occur, a secondary intention of revenue may happen
John Bell 🏡
Principle: The decision to sell is not a change in intention. Waiting for better prices is allowed