GROSS INCOME, SPECIAL INCLUSIONS AND EXEMPT INCOME - MEMORANDUM
# Item
GROSS INCOME
Easy Movers (Pty) Ltd
1 Sales Revenue
Amount outstanding for services
2 rendered
3 Receipt on behalf of supplier
4 Sale to truck dealership
5 Insurance company damages
6 Inheritance
7 Interest on bank account
8 Warehouse rental
9 Satrix investment
10 REIT dividends
11 Foreign Dividend
LESS: EXEMPT INCOME
7 Interest on bank account
9 Satrix investment
10 REIT dividends
11 Foreign dividend
INCOME
Reason / Reference to the Act Marks Calculation Income Marks
3914223.44+434557.62+143
Amounts received by or accrued to in terms of the Gross Income Definition 1 070+71535 4 563 386.06 2
Included in Gross Income because even though not received, the amount had accrued to the taxpayer during the year of
assessment. CIR vs People's Stores. Mooi v SIR. No adjustment required to Income as the amount (excluding VAT) will
already be included in Sales Revenue. 1 - 1
Accrued to or in favour of - The amount is not included in gross income because it was received on behalf of someone else.
CIR v Lategan. Geldenhuys v CIR 1 - 1
Not of a capital nature requirement of gross income definition - the truck is a capital asset and thus the sale thereof is not
included in gross income 1 - 1
Not of a capital nature requirement (damages) - the truck is a capital asset and the amount paid out as damages for it was
therefore to fill the gap in the company's assets. This amount should not be included in gross income. (1)The amount paid
out as damages for the boxes, however, filled the gap in the company's pocket (revenue in nature) and thus should be
included in gross income. WJ Fourie Beleggings vir CSARS. (1) 2 6 000.00 1
Not of a capital nature requirement - an inherited amount is regarded as a capital receipt. The amount is received through
little effort and can't be linked to the taxpayers buisness. Fortuitous. 1 - 1
Interest is income of a revenue nature, the fruit of capital. 1 36 000.00 1
Rental income - income of a revenue nature. Gross income is the earlier of received by or accrued. Received 7 month's of 12000 x 7 (pays in advance of
rental income by 31 December 2020 1 the 1st of the month) 84 000.00 1
Local interest - revenue in nature 1 2 455.44 1
Local taxable dividend - already taxed. GI para(k) special inclusion 1 781.03 1
Taxable dividend. GI para(k) special inclusion 1 12.00 1
Gross Income para(k) special inclusion for dividends 1 2 200.00 1
Gross Income para(k) special inclusion for dividends 1 460.00 1
No exemption exists (section 10(1)(i) only applicable to individual taxpayers) 1 - 1
Local interest - no exemption exists (section 10(1)(i) only applicable to individual taxpayers) 1 - 1
Local taxable dividend - already taxed. Section 10(1)(k) exemption 1 - 781.03 1
Taxable dividend. Dividend from REIT is not exempt 1 - 1
Dividend from REIT is not exempt in terms of section 10(1)(k)(i)(aa) 1 - 1
Foreign dividend exemption section 10B(2)(d) 1 - 460.00 1
20 4 694 053.50 20
Available 40
Maximum 40