How Much Do You Know About Gross Income and Taxable Capital Gains?

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What is the subjective approach to interpreting the meaning of an amount received for one's own benefit in the context of illegal earnings?

An amount received with the intention to benefit from it (correct)

An amount received that is immediately repaid

An amount received that is donated to charity

An amount received that is not intended for personal benefit

According to the interpretation that an amount is accrued to a person when that person is entitled to it, what should be included in the current year/1st year of assessment if the total amount is payable in two successive tax years with the first payment payable in the current year of assessment?

The whole amount (correct)

The first payment only

The balance only

The total amount should be split evenly between the two tax years

In the case of MP Finance Group CC v CSARS 2007 (5) SA 521, what was the taxpayer's involvement in the illegal earnings?

The taxpayer was a victim of an illegal pyramid scheme

The taxpayer reported the illegal earnings to the authorities

The taxpayer received ill-gotten gains (correct)

The taxpayer was not involved in the illegal earnings

What is the conclusion of the approach that the receiver of ill-gotten gains could not be said to have received the money?

The receiver is immediately obligated to repay the money Signup and view all the answers

What is the definition of gross income according to section 1 of the Income Tax Act?

The total amount of cash or other assets received by a person during the tax year, excluding capital gains Signup and view all the answers

What is the difference between gross income for residents and non-residents?

Gross income for residents includes all amounts received or accrued to during the tax year, while gross income for non-residents is limited to amounts from a source within the Republic Signup and view all the answers

What happens if a taxpayer has no gross income or taxable capital gains?

They are not required to file an income tax return Signup and view all the answers

What is excluded from gross income according to the definition in section 1 of the Income Tax Act?

Receipts or accruals of a capital nature during the tax year of assessment Signup and view all the answers

What is the definition of gross income in income tax law?

Gross income may include any property earned by the taxpayer whether corporeal or incorporeal Signup and view all the answers

What is the significance of the phrase 'received by' in income tax law?

It indicates that the taxpayer has received the amount on his or her own behalf and for his or her own benefit Signup and view all the answers

In Geldenhuys v CIR (1947) 3 SA 256, what was the ruling on whether an amount received as an agent or trustee forms part of the gross income of that agent or trustee?

It does not form part of the gross income of that agent or trustee Signup and view all the answers

What was the ruling in the case of Stander v CIR (1997) 59 SATC 212 regarding a prize awarded to the taxpayer?

The prize was not considered an amount within the definition of gross income because it could not be converted into money or cash Signup and view all the answers

What is the historical stance of the judiciary on whether receipts/accruals from illegal activity should be included when calculating taxable income?

Some courts have followed an objective approach and some have followed a subjective approach Signup and view all the answers

How Much Do You Know About Gross Income and Taxable Capital Gains?

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Questions and Answers

What is the subjective approach to interpreting the meaning of an amount received for one's own benefit in the context of illegal earnings?

According to the interpretation that an amount is accrued to a person when that person is entitled to it, what should be included in the current year/1st year of assessment if the total amount is payable in two successive tax years with the first payment payable in the current year of assessment?

In the case of MP Finance Group CC v CSARS 2007 (5) SA 521, what was the taxpayer's involvement in the illegal earnings?

What is the conclusion of the approach that the receiver of ill-gotten gains could not be said to have received the money?

What is the definition of gross income according to section 1 of the Income Tax Act?

What is the difference between gross income for residents and non-residents?

What happens if a taxpayer has no gross income or taxable capital gains?

What is excluded from gross income according to the definition in section 1 of the Income Tax Act?

What is the definition of gross income in income tax law?

What is the significance of the phrase 'received by' in income tax law?

In Geldenhuys v CIR (1947) 3 SA 256, what was the ruling on whether an amount received as an agent or trustee forms part of the gross income of that agent or trustee?

What was the ruling in the case of Stander v CIR (1997) 59 SATC 212 regarding a prize awarded to the taxpayer?

What is the historical stance of the judiciary on whether receipts/accruals from illegal activity should be included when calculating taxable income?

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