Page 17 - Test 1 Slides - 4. Gross Income

GROSS INCOME

Received by

Example 5

• Kayla approaches the bank and obtains a personal loan of

R100 000. Will the R100 000 be included in her gross

income?

Solution:

• Although an amount has been received it has not been

received for Kayla’s benefit as she needs to pay it back and it

should not be gross income (Geldenhuys case).

Furthermore, she is also not unconditionally entitled to the

amount (Lategan case and Mooi case) and it will thus not

form part of her gross income. The amount is not gross

income as it has neither been “received” nor does it

“accrue” to the person.

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