Q&A notes: Second year:

Gross income

All second year q&a notes

Second year questions on capital in nature

From Portable Study Buddy – Waseema Noormahomed (SAIT)

Questions:

  1. Is the intention of the taxpayer important to determine if something is of a capital or revenue in nature?
  2. Is ‘capital in nature’ defined in the Income Tax Act?
  3. What two questions does one need to ask to determine the nature of an amount received by or accrued to a taxpayer?
  4. Which is the main case that deals with the fruit versus tree analogy?

Second year questions on ‘accrued to’

Questions:

  1. In which case/cases does a condition have to be met before an amount can be included into gross income?
  2. Is ‘accrued to’ defined in the Income Tax Act?
  3. What is the principle of the Cactus Investments (Pty) Ltd v CIR case?

Second year question on “received by”

Portable Study Buddy – Waseema Noormahomed (SAIT)

 Questions:

1. Are Illegal receipts taxable? (Yes/No)

Second year question on “total amount in cash or otherwise”

Portable Study Buddy – Waseema Noormahomed (SAIT)

Gross income 2nd year question

AE (Pty) Ltd (“AE”) is a South African company that produses cookies as its normal operations. The cookies are cut, baked and decorated by a number of machines. As part of there porses, AE packes the cookies in boxes of 20 cookies. AE has a year end of 31 January.