Gross income special inclusions.mmap
For example:
s 7, s 8(4)(a) & s 24I(3)
(n) any amount in terms of
any other provision of
the Act to be included in
income
(a) annuity (case law),
"living annuity" (s1) or
"annuity amount"
(other than from policy of
insurance refer par (d)(ii) of
GI definition)
Policy for death, disablement or
severe illness of employee or
director (less loans already taxed)
Exempt: s10(1)(gH) if premiums
not deducted under s 11(w)
give up capital in exchange for these payments
you never see the capital again
(m) key-person policies
Test if the principal continues to
exist as a debt or is liquidated
when the transaction takes place.
If it is liquidated the payments
constitute an annuity.’
Hogan
extinguish the
capital
Annual, repetitive, chargeable
"living annuity" and par (d)(ii) will be dealt with
in the "Individuals" lecture later in the year
10(2)
No exemptions apply if annuity and
10(1)(h)
10(1)(k)
10A
(lC) government grant received ito s 12P
10C
(b) alimony,
allowance or
maintenance
Possible exemption:
s 10(1)(k) and s 10B
(jA) disposal of any
asset manufactured ,
produced, constructed
or assembled
Labour brokers and personal service providers
SPECIAL
INCLUSIONS in
"gross income"
(SILKE Ch. 4)
amount STIPULATED
in the agreement
if not stipulated then
use FAIR AND
REASONABLE VALUE
Natural persons by virtue of employment
(cA) and (cB)
restraint of trade
Payer's deduction in terms of s 11( cA)
Individuals' lecture later in the year:
(c) services, employment, holding of any office ( Stevens v C:SARS)
(d) relating to office or employment
(e) and (eA) fund benefits
(f) commutation of amounts due
(i) cash equivalent of fringe benefits
AMOUNT
USE, or
Accrual of right to have
improvement effected
IN PRACTICE (do in tests):
Same time as deduction
granted for lessee, THUS
completion of improvements
(divorce settlements
after 21 March 1962)
TIME
Deduction for lessee in terms of s 11( g)
Section 11(h) relief
(h) right to have
leasehold
improvements
effected
(obligation vs
permission)
the person receiving includes
RIGHT of use
(g) premium
not just for land and building
"distinct from and in addition to, or in lieu of, rent"
Lessee's deduction in terms of s 11( f)
person paying
imparting
(or undertaking to impart)
(gA) scientific , technical,
industrial or commercial
knowledge ("know-how")
assistance with application or
utilization of such knowledge
(or undertaking to assist with
application or utilization of such
knowledge
Payer's deduction in terms of s 11( f)
Exemptions
Deductions
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show inclusions and
exemption seperately
Recipient effectively not taxed, and
payer receives no deduction
(k) dividend or foreign dividend
IF similar to assets for
manufacture, sale or
exchange
burden of
proof on the
taxpayer
Exempt: s10(1)(u)
does not matter whether its capital or revenue in nature!!!!!!
received by
not a sole proprietor
= normal def
capital in nature