LML4804
ASSIGNMENT 1 (SEMESTER 2)
DUE DATE: 26 August 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than …August 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
Question 1.1: Gross Income and the Deposit Paid by FMP
In considering whether the deposit paid by the Freedom Movement Party (FMP) and the
outstanding amount owed should be included in the Gross Income of Green Print Media House (GP
Media House), we must analyze the situation in the context of South African tax law and relevant
case decisions.
Gross Income Definition and Relevant Tax Principles
Under South African tax law, Gross Income is defined in Section 1 of the Income Tax Act 58 of 1962
as the total amount, in cash or otherwise, received by or accrued to a taxpayer during a particular
year of assessment, excluding amounts of a capital nature. For an amount to be included in Gross
Income, it must be either received or accrued.
The key question is whether the deposit of R150,000 received by GP Media House and the
outstanding amount can be considered as "received" or "accrued" within the meaning of the Act.
Deposit Received by GP Media House
ASSIGNMENT 1 (SEMESTER 2)
DUE DATE: 26 August 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than …August 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
Question 1.1: Gross Income and the Deposit Paid by FMP
In considering whether the deposit paid by the Freedom Movement Party (FMP) and the
outstanding amount owed should be included in the Gross Income of Green Print Media House (GP
Media House), we must analyze the situation in the context of South African tax law and relevant
case decisions.
Gross Income Definition and Relevant Tax Principles
Under South African tax law, Gross Income is defined in Section 1 of the Income Tax Act 58 of 1962
as the total amount, in cash or otherwise, received by or accrued to a taxpayer during a particular
year of assessment, excluding amounts of a capital nature. For an amount to be included in Gross
Income, it must be either received or accrued.
The key question is whether the deposit of R150,000 received by GP Media House and the
outstanding amount can be considered as "received" or "accrued" within the meaning of the Act.
Deposit Received by GP Media House
