, specific inclusions :
OverviOw :
gross income can include amounts in a ways :
O general definition of as schaptor 3)
especific inclusions in parcal-ins of the definition of G2 in s1()
& even if amount is capital in nature ,
can still be included in G2
especific inclusion amounts
Requirements O an amount
:
① Received I accrued
O During DOA
① Dy I in favour of the taxpayer
cunless the act says Ot he wisel
specific inclusions do not limit the general def .
Lion if an amount is not listed in Par (a)-In) ,
it can still
be taxed under the general def .
Priority rule :
specific legislation overvides general legislation
↳ Therefore specific inclusions ↑ priority than general def.
par (1) :
"Catch-all" ,
includes amounts that another section of
the act says must be included in income .
① Annuities
↳ par(a) , d(ii) of G2 ; SSlOSIlIgAS ,
IOA ; par elxs of dil schedule
u parlas includes : annuities
living annuities
'annuity amount as in S10 All
exclusion :
proceeds from an insurance policy where the person
is I was an employee director of the policyholder .
↳ This is taxed under par salsiis
L Beneficial for taxpayer lit eliminates double taxations
↳ such amounts may qualify for an exemption under 16) (9G)
, capital ve income :
·
normal rule Capital
:
receipts not taxable
B11 annuities are fully taxable even if in Capital nature
sexcept SIDA annuities where a part may be exempt
Parlas however does not override source rules
BOYG V CIR :
Source is where the contract creating the annuity
was concluded
Definition of an annuity /KB2 en ander 1 Hogan)
① Annual payment I can be monthly as well,
① Repetitive : paid from year to year , and rate ,
certain period
⑤ chargeable against a person soplications
How do an annuity drise !
① Bought from insurance company
① granted by way of a donation/ bequest trust otherwise
③ Received as consideration
pannuities can be for a fixed period or undetermined period
·
annuities can be charged upon proporty or not
I if charged upon property ,
annuity is paid from the income
generated from specific property .
& annuities can be charged upon a person
Isomeone must be obliged by contract will trust lotherwise to pay
examples of annuities
are annuities :
Contractual
·
obligation/obligation under a trust to make
regular monthly annual payments for life /fixed period .
Life
·
pension bayable to widow , by employer ,
who
has bound himself to pay .
, ·
fixed annual amounts payable out of the residue
of an estate its a will .
(whether specified time for life ,
fixed variation of
pots ,
income (capital assets of estates
RB2 en n ander v Hogan : A fireman received monthly payments
after an injury .
↳ Court held :
Payments were annuities because :
·
Repetitive
·
conditional on being alive
·
Legally enforceable
L Result : ·
Taxable under par la)
·
pale to be withheld
paye on annuities :
Annuities are remuneration under fourth schedule
Therefore , payer must deduct employees' tax (PAYE) .
annuity amounts :
·
Def : amount payable by way of an annuity under an "annuity
contract" , and is a consequence of commutation / termination
of an "annuity contract" .
These are purchased from insurers
:
annuities
· ·
·
bought with a lump sum .
Insurer guarantees payments for life/fixed term .
7 axation :
Capital component
annuity has a inco me
·
component
↳ foll amount :
included in GI ISIOAIS)
↳ Capital portion : exempt under Is loALes)
OverviOw :
gross income can include amounts in a ways :
O general definition of as schaptor 3)
especific inclusions in parcal-ins of the definition of G2 in s1()
& even if amount is capital in nature ,
can still be included in G2
especific inclusion amounts
Requirements O an amount
:
① Received I accrued
O During DOA
① Dy I in favour of the taxpayer
cunless the act says Ot he wisel
specific inclusions do not limit the general def .
Lion if an amount is not listed in Par (a)-In) ,
it can still
be taxed under the general def .
Priority rule :
specific legislation overvides general legislation
↳ Therefore specific inclusions ↑ priority than general def.
par (1) :
"Catch-all" ,
includes amounts that another section of
the act says must be included in income .
① Annuities
↳ par(a) , d(ii) of G2 ; SSlOSIlIgAS ,
IOA ; par elxs of dil schedule
u parlas includes : annuities
living annuities
'annuity amount as in S10 All
exclusion :
proceeds from an insurance policy where the person
is I was an employee director of the policyholder .
↳ This is taxed under par salsiis
L Beneficial for taxpayer lit eliminates double taxations
↳ such amounts may qualify for an exemption under 16) (9G)
, capital ve income :
·
normal rule Capital
:
receipts not taxable
B11 annuities are fully taxable even if in Capital nature
sexcept SIDA annuities where a part may be exempt
Parlas however does not override source rules
BOYG V CIR :
Source is where the contract creating the annuity
was concluded
Definition of an annuity /KB2 en ander 1 Hogan)
① Annual payment I can be monthly as well,
① Repetitive : paid from year to year , and rate ,
certain period
⑤ chargeable against a person soplications
How do an annuity drise !
① Bought from insurance company
① granted by way of a donation/ bequest trust otherwise
③ Received as consideration
pannuities can be for a fixed period or undetermined period
·
annuities can be charged upon proporty or not
I if charged upon property ,
annuity is paid from the income
generated from specific property .
& annuities can be charged upon a person
Isomeone must be obliged by contract will trust lotherwise to pay
examples of annuities
are annuities :
Contractual
·
obligation/obligation under a trust to make
regular monthly annual payments for life /fixed period .
Life
·
pension bayable to widow , by employer ,
who
has bound himself to pay .
, ·
fixed annual amounts payable out of the residue
of an estate its a will .
(whether specified time for life ,
fixed variation of
pots ,
income (capital assets of estates
RB2 en n ander v Hogan : A fireman received monthly payments
after an injury .
↳ Court held :
Payments were annuities because :
·
Repetitive
·
conditional on being alive
·
Legally enforceable
L Result : ·
Taxable under par la)
·
pale to be withheld
paye on annuities :
Annuities are remuneration under fourth schedule
Therefore , payer must deduct employees' tax (PAYE) .
annuity amounts :
·
Def : amount payable by way of an annuity under an "annuity
contract" , and is a consequence of commutation / termination
of an "annuity contract" .
These are purchased from insurers
:
annuities
· ·
·
bought with a lump sum .
Insurer guarantees payments for life/fixed term .
7 axation :
Capital component
annuity has a inco me
·
component
↳ foll amount :
included in GI ISIOAIS)
↳ Capital portion : exempt under Is loALes)
