Tax Law
Tax Law Assignment
According to the Act Gross Income is defined as , in relation to any year or period of assessment, means, in the case of any person, the total amount, in cash or otherwise, received by or accrued to or in favour of such person during such year or period of assessment from a source within or deemed to be within Namibia, excluding receipts or accruals of a capital nature, but including, without in any way limiting the scope of this definition, such amounts (whether of a capital nature or not) so received or accrued as are described further in the section.
Gross Income is made up of all amounts received by or accrued to a person from a source within Namibia but excluding amounts of a capital nature (except if specially included by another provision). In Namibia it liability is based on the source of the income concerned and not on the residence of the tax payer, as is the position in the majority of tax jurisdictions. This means that non-residents temporarily employed in Namibia will be liable to tax here and conversely that non-Namibian source income will generally be exempt in the hands of a Namibian resident.
Any income received is taxable even if it is for future services rendered or goods to be delivered. In the case of Geldenhuys v CIR it was concluded that the words received by mean received by the tax payer on his own behalf for his own benefit. Accrual envisages the existence of an absolute entitlement to the income concerned even though the due date for payment may be some time in the future and even after the year end concerned. In the case of Lategan v CIR accrued was held to mean to which he has become entitled.
An amount may be in cash or in kind and may be a physical thing or an incorporeal such as a right (for example an option to acquire something at a low value). So long as the thing which accrues can be converted into cash, that notional cash value is the amount of the gross income concerned. Allowable deductions must
According to the Act Gross Income is defined as , in relation to any year or period of assessment, means, in the case of any person, the total amount, in cash or otherwise, received by or accrued to or in favour of such person during such year or period of assessment from a source within or deemed to be within Namibia, excluding receipts or accruals of a capital nature, but including, without in any way limiting the scope of this definition, such amounts (whether of a capital nature or not) so received or accrued as are described further in the section.
Gross Income is made up of all amounts received by or accrued to a person from a source within Namibia but excluding amounts of a capital nature (except if specially included by another provision). In Namibia it liability is based on the source of the income concerned and not on the residence of the tax payer, as is the position in the majority of tax jurisdictions. This means that non-residents temporarily employed in Namibia will be liable to tax here and conversely that non-Namibian source income will generally be exempt in the hands of a Namibian resident.
Any income received is taxable even if it is for future services rendered or goods to be delivered. In the case of Geldenhuys v CIR it was concluded that the words received by mean received by the tax payer on his own behalf for his own benefit. Accrual envisages the existence of an absolute entitlement to the income concerned even though the due date for payment may be some time in the future and even after the year end concerned. In the case of Lategan v CIR accrued was held to mean to which he has become entitled.
An amount may be in cash or in kind and may be a physical thing or an incorporeal such as a right (for example an option to acquire something at a low value). So long as the thing which accrues can be converted into cash, that notional cash value is the amount of the gross income concerned. Allowable deductions must
References: Hayes, J. 2000. A students guide to Namibian Income Tax. Windhoek: J & W Publishers Stack E.M, Cronje, M, Hamel, E.H, 2001 [ 10 ]. 1946 AD 441, 14 SATC 1 [ 11 ] [ 12 ]. 1926 AD 444 [ 13 ] [ 16 ]. Stack E.M, Cronje, M, Hamel, E.H, 2001. The Taxation of Individuals and Companies. 15th ed. Durban: Butterworths. P.47 [ 17 ] [ 24 ]. 1945 AD 301 (13 SATC 21) [ 25 ] [ 26 ]. COT v Booysen’s Estates, 1918 AD 576, 32 SATC 10 [ 27 ] [ 28 ]. 1926 CPD 203, 2 SATC 16 [ 29 ] [ 30 ]. 1945 AD 301, 13 SATC 21 [ 31 ] [ 32 ]. 1938 A, 9 SATC 361 [ 33 ] [ 34 ]. 1945 AD 301, 13 SATC 21 [ 35 ] [ 36 ]. Hayes, J. 2000. A students guide to Namibian Income Tax. Windhoek: J & W Publishers. P.19 [ 37 ] [ 38 ]. 1988 (3) SA 819 (A), 50 SATC 98 [ 39 ] [ 40 ]. Hayes, J. 2000. A students guide to Namibian Income Tax. Windhoek: J & W Publishers. P.19 [ 41 ] [ 42 ]. 1956 (1) SA 602 (A), 20 SATC 355 [ 43 ] [ 44 ]. 1992 AD, 54 SATC 271 [ 45 ] [ 46 ]. Stack E.M, Cronje, M, Hamel, E.H, 2001. The Taxation of Individuals and Companies. 15th ed. Durban: Butterworths. P.58. [ 47 ]. 1929 AD 137, 4 SATC 8 [ 48 ] [ 49 ]. 1976(4) SA 415 (A), [ 50 ] [ 51 ]. 1975 (4) SA 177 (A), 37 SATC 193 [ 52 ] [ 53 ]. Stack E.M, Cronje, M, Hamel, E.H, 2001. The Taxation of Individuals and Companies. 15th ed. Durban: Butterworths. P.58 – 59.