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P. 6
Gross Income
• Received and Accrued=It refers to receipts and accruals.
• Received= on the taxpayer’s behalf or for taxpayers
benefit.
• How about deposits and advance payments?
• If non-refundable=include in the gross income.
• If refundable for example a loan=its not gross income.
• What if a person receives a deposit for example a
lawyer for services to be offered in the following year
of assessment and he uses it for his own benefit.(he
has an intention but not the right hence the deposit
will be included in his gross income)
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