gross income' Flashcards
1
Q
What is the definition of Gross Income?
- resident & non
A
- during year of assessment
- total amount
- in cash or otherwise
- received/accrued/in favour of
- *from SA deemed source
- excluding receipts/accruals of capital nature.
2
Q
When is a natural person defined as a resident?
A
- when they are an ordinarily resident
- when they have spent a certain no of days (physical presence test)
3
Q
When is a company defined as a resident?
A
- When they are incorporated/established/formed in the Republic
- When the place of effective management is in the Republic
4
Q
What 2 cases apply to the definition of an ordinarily resident?
A
- Cohen- return to real home
- Kuttel- was a habitually/normally resident
5
Q
What are the 3 requirements that need to be satisfied ito the physical presence test?
A
- 91 days and > in current
- 91 days and > in each of 5 preceding years
- all together > 195 days
6
Q
Where is the place of effective management?
A
Where key management and commercial decisions are in substance made.
