SOLUTIONS
T UTORING FOR FAC,MAC,ECS,STA,DSC,TAX, FIN ,INV,QMI, BNU,MNG,MNB,BSM, CLA
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, QUESTION 1
Gross Income Discussion for Portia Financial Advisory (Pty) Ltd
Requirements Discussion
The R1 million was received by PFA
1. Total amount, in cash or otherwise upfront in cash, satisfying the requirement
of "in cash or otherwise" (Lategan v CIR ).
"Received by" means the taxpayer must
receive the amount on their own behalf
and for their own benefit (Geldenhuys v
CIR ). PFA did not receive the R1 million
for its own benefit; it was entrusted to
them to be invested on behalf of the client
2. Received by or accrued to
and was kept in a separate account.
Furthermore, PFA is not unconditionally
entitled to the R1 million (it has not
accrued to them); they only have a right
to the 5% returns generated. Therefore, it
was not received by or accrued to PFA.
Portia Financial Advisory (Pty) Ltd is a
3. Resident
South African resident company.
The R1 million was paid on 1 June 2025,
4. During the year of assessment which falls within PFA's 2026 year of
assessment ending 28 February 2026.
Although the receipt fails the "received
by" test, it is worth noting that the R1
5. Not of a capital nature
million remains the capital of the client
and is therefore of a capital nature to PFA.
Conclusion: The R1 million must not be included in Portia Financial Advisory (Pty) Ltd's
gross income for the 2026 year of assessment.
QUESTION 2
Part (a): First Provisional Tax Payment
Date of payment: 30 November 2025
Year of assessment Reason
T UTORING FOR FAC,MAC,ECS,STA,DSC,TAX, FIN ,INV,QMI, BNU,MNG,MNB,BSM, CLA
whatsapp me on+27737560989
EMAIL:
, QUESTION 1
Gross Income Discussion for Portia Financial Advisory (Pty) Ltd
Requirements Discussion
The R1 million was received by PFA
1. Total amount, in cash or otherwise upfront in cash, satisfying the requirement
of "in cash or otherwise" (Lategan v CIR ).
"Received by" means the taxpayer must
receive the amount on their own behalf
and for their own benefit (Geldenhuys v
CIR ). PFA did not receive the R1 million
for its own benefit; it was entrusted to
them to be invested on behalf of the client
2. Received by or accrued to
and was kept in a separate account.
Furthermore, PFA is not unconditionally
entitled to the R1 million (it has not
accrued to them); they only have a right
to the 5% returns generated. Therefore, it
was not received by or accrued to PFA.
Portia Financial Advisory (Pty) Ltd is a
3. Resident
South African resident company.
The R1 million was paid on 1 June 2025,
4. During the year of assessment which falls within PFA's 2026 year of
assessment ending 28 February 2026.
Although the receipt fails the "received
by" test, it is worth noting that the R1
5. Not of a capital nature
million remains the capital of the client
and is therefore of a capital nature to PFA.
Conclusion: The R1 million must not be included in Portia Financial Advisory (Pty) Ltd's
gross income for the 2026 year of assessment.
QUESTION 2
Part (a): First Provisional Tax Payment
Date of payment: 30 November 2025
Year of assessment Reason
