Gross Income

Question 0

Source

Answer 0

Residents are taxed on all income

Non-residents are taxed on SA source income. Section 9

Question 1

Deposits(bottles) constitute receipts of income since the customer may never return the tin.

Answer 1

Pyott v cir

Biscuit shaped pot on stove

Question 4

Stolen amounts do not constitute a receipt. There has to be a giver and recipient.

Answer 4

Cot v g

Question 5

Settlement discount not income till payment becomes late

Answer 5

Gud holdings (pty) ltd v csras
God holding American Indian

Question 6

Pyott v cir

Answer 6

Deposits(bottles) constitute receipts of income since the customer may never return the tin.

Question 7

Ordinarily resident in only one place. May be absent. Place habitually and normally resident. Principal residence.

Answer 7

Cohen v cir

Cir v kuttel

Question 9

Physically presence test. If not ordinarily resident.

Answer 9

Present 91
More than 91 in each of last 5
915 In last 5
Interpretation note 3

Question 10

Company Resident

Answer 10

Place of effective management

Interpretation note 6

Question 11

Not both capital and income. Must be one.

Answer 11

Pyott ltd v cir

Biscuit pot halved. Capital building in one, bike being revved in other

Question 12

Must be:

Received by him on his own behalf for his own benefit

Answer 12

Geldenhuys v cir

Half the house that lived then Ben that him built

Question 13

Income is inevitably generated by a capital asset and that income is revenue in nature. Tree v fruit

Answer 13

Cir v visser

Fish on trees

Question 14

Proceeds from sale of:
Floating capital-revenue;
Fixed capital-capital;
In nature

Intention important

Answer 14

Cir v George Forest Timber Co Ltd

Floating forest of trees

Question 15

What was the intention when acquired. Was there a change of intention.

Answer 15

Cir v stott

Scott buys a tent, crosses a road and sells it

Question 16

Ipse dixit

Answer 16

What the taxpayer says his intention was.

Question 17

Cir v Richmond estates (pty) ltd

Richmond, from fresh prince, directing a action play staring a scale inside a tent

Answer 17

The greatest weight is placed on the actions of the directors. Intention of a company

Question 18

CIR v people stores

Lategan v cir

Answer 18

Revenue: every form of property earned which has a money value

Question 19

Geldenhuys v cir

Answer 19

Must be:

Revived by him on his own behalf for his own benefit

Question 20

Cot v g

Answer 20

Stolen amounts do not constitute a receipt. There has to be a giver and recipient.

Question 21

Cir v Witwatersrand association of racing clubs

Answer 21

Beneficial receipt does not occur in the hands of the first party. Moral obligation to charity not binding.

Question 22

Where this section applies, the income from a sale of shares held for 3 years or longer, are deemed capital in nature

Answer 22

S 9C

Qualifying shares

Question 24

Cir v people stores

Answer 24

The full amount and not the discounted value falls into gross income.

Question 25

Gud holdings (pty) ltd v csras

Answer 25

Settlement discount not income till payment becomes late

Question 26

Cohen v cir

Cir v kuttel

Answer 26

Ordinarily resident in only one place. May be absent. Place habitually and normally resident. Principal residence.

Question 27

Cir v George Forest Timber Co Ltd

Answer 27

Proceeds from sale of:
Floating capital-revenue;
Fixed capital-capital;
In nature

Intention important

Question 28

S 9C(2)

Answer 28

Qualifying share proceeds other than dividends deemed capital in nature

Question 30

Cir v lever brothers and unilever ltd Essential sterolin products (pty) ltd v cir

Answer 30

Source of income. Originating cause and location of cause: | Dominant cause:

Question 32

Pyott ltd v cir

Answer 32

Not both capital and income. Must be one.

Question 33

Cir v stott

Answer 33

What was the intention when acquired. Was there a change of intention.

Question 34

Cir v visser

Answer 34

Income is inevitably generated by a capital asset and that income is revenue in nature. Tree v fruit

Question 35

It requires something more than the decision to sell to constitute a change of intention.

Answer 35

Cir v stott

Question 36

Cir v stott

Answer 36

It requires something more than the decision to sell to constitute a change of intention.

Question 37

Must embark on a scheme of profit making to constitute a change of intention.

Answer 37

John bell and co (pty) ltd v sir

Question 38

John bell and co (pty) ltd v sir

Answer 38

Must embark on a scheme of profit making to constitute a change of intention.

Question 39

Something more like: Intention at acquisition and sale Activities of owner Ect

Answer 39

Natal Estates ltd v sir

Question 40

Natal Estates ltd v sir

Answer 40

Something more like: Intention at acquisition and sale Activities of owner Ect

Question 41

Realization of a capital asset to best advantage does not mean that the rubicon was crossed

Answer 41

Berea west estates (pty) ltd v sir

Question 42

Berea west estates (pty) ltd v sir

Answer 42

Realization of a capital asset to best advantage does not mean that the rubicon was crossed

Question 43

Onus of proof of capital in nature

Answer 43

Taxpayer

Question 44

Ipse dixit of taxpayer. Objective factors

Answer 44

``` Length of time held Frequency of transaction Nature of business Location in income stream Reason for sale Financing Nature of asset ```

Question 45

Specific situations: | Damages and compensation

Answer 45

Compensation for loss of profits: Revenue Loss of capital asset or defamation: Capital

Question 46

Specific situations: | Fortuitous gains

Answer 46

Gifts, prizes, inherited amounts, donations Capital

Question 47

Specific situations: | Gambling

Answer 47

Sporadic- capital | Regular- revenue

Question 48

Specific situations: | Illegal businesses

Answer 48

Legality irrelevant for nature of income | Cir v delgoa bay cigarette co. Ltd

Question 49

``` S 9C(1) Qualifying share ```

Answer 49

Equity share held for 3 years or longer Excluding: Share in a share block company not listed on the jse Share in a company that was non resident in the last 3 years Share that was held as a hybrid equity instrument in the last 3 years

Question 50

Deemed capital: S 9C(3) Section 9C will not apply

Answer 50

Anti-avoidance provision Applies to shares in the company of a connected person More than 50% of the market value is attributable to immovable property acquired in the last 3 years Company rented out asset and rent was received by a third party. Last 3

Question 54

Beneficial receipt does not occur in the hands of the first party. Moral obligation to charity not binding.

Answer 54

Cir v Witwatersrand association of racing clubs | Horse with halo running on field at wits

Question 55

Revenue: every form of property earned which has a money value

Answer 55

CIR v people stores Lategan v cir Late people store houses made of money in holes

Question 63

The full amount and not the discounted value falls into gross income.

Answer 63

Cir v people stores

Question 69

Source of income. Originating cause and location of cause: | Dominant cause:

Answer 69

Cir v lever brothers and unilever ltd Essential sterolin products (pty) ltd v cir