2018/03/29
Gross Income:
definition of a ‘resident’
• Principle? (ordinarily resident – test)
– A person is ‘ordinarily resident’ in the place where
he will return to after his ‘wanderings’ (his home)
1
© 2
Gross Income:
definition of a ‘resident’
• Principle? (ordinarily resident – test)
– A person is ‘ordinarily resident’ where he normally
resides, apart from temporary or occasional
absences
©
3 4
Gross Income:
there must be an amount!
• Principle?
─ The onus is on the Commissioner (SARS)
to determine the ‘amount’
©
5 6
1
, 2018/03/29
Gross Income:
the amount must be in cash or otherwise
• Principle?
– ‘amount’ includes not only money, but also
• every form of property
– earned by the taxpayer
– which has money value
• even the right to receive payment!
7 © 8
Gross Income:
there must be an amount in cash or otherwise!
• Principle?
– The right to an interest free loan is
• an amount and
• this right has value in money!
9
© 10
Gross Income:
From a source within the Republic
• Principle? (how to determine ‘source’)
– Ask 2 questions
1. What was the originating cause of the income?
– Determine the activity that lead to the receipt
• Where more than one, choose the dominant
2. Where is this originating cause located?
• In which country did this activity take place?
11
© 12
2
Gross Income:
definition of a ‘resident’
• Principle? (ordinarily resident – test)
– A person is ‘ordinarily resident’ in the place where
he will return to after his ‘wanderings’ (his home)
1
© 2
Gross Income:
definition of a ‘resident’
• Principle? (ordinarily resident – test)
– A person is ‘ordinarily resident’ where he normally
resides, apart from temporary or occasional
absences
©
3 4
Gross Income:
there must be an amount!
• Principle?
─ The onus is on the Commissioner (SARS)
to determine the ‘amount’
©
5 6
1
, 2018/03/29
Gross Income:
the amount must be in cash or otherwise
• Principle?
– ‘amount’ includes not only money, but also
• every form of property
– earned by the taxpayer
– which has money value
• even the right to receive payment!
7 © 8
Gross Income:
there must be an amount in cash or otherwise!
• Principle?
– The right to an interest free loan is
• an amount and
• this right has value in money!
9
© 10
Gross Income:
From a source within the Republic
• Principle? (how to determine ‘source’)
– Ask 2 questions
1. What was the originating cause of the income?
– Determine the activity that lead to the receipt
• Where more than one, choose the dominant
2. Where is this originating cause located?
• In which country did this activity take place?
11
© 12
2
