'Received by' and 'accrued to.'

Abstract

Overall objective The overall objective of this dissertation is to identify and analyse decisions in tax cases in which the concept of receipts and accruals has been applied over the years. As there is no definition in the Income Tax Act 58 of 1962 as amended (hereinafter referred to as 'the Act') as to the meaning of the terms 'received by' or 'accrued to', the other available option is to resort to case law as interpreted by the courts. The research involves an analysis of reported cases, statutes and any research relevant to the topic with the hope of bringing a better understanding of the meaning of a receipt or an accrual, and to make appropriate recommendations. The dissertation includes the following chapters: Aims of the topic Introduction The meaning of 'accrued to' the taxpayer The meaning of 'received by' the taxpayer and beneficial receipt or accrual Non-monetary receipts and accruals including barter transactions Time of accrual and valuation of the accrued amount Conclusion Research question The question to be answered by this dissertation will be an evaluation of the phrase 'received by' or 'accrued to' with emphasis on the valuation of non-monetary receipts for the purpose of the definition of 'gross income'.