Answer to Question #75652 in Management for ibn

Question

Sipho is 66 years old. He completed his services with the company in December 2016. He was an employee for more than 20 years. He received in December 2016, a pension lump sum payment of R400 000, the tax free portion is R100 000 and in January and February 2017, he received the annuity amount of R2000 monthly.
Sipho has been a partner in a gardening service. He sold his share of the goodwill for 2% of the Gross Income payable for the next 15 years. In the 2017 year of assessment, he received 3 such pay-outs of R15 000 each, as the turnover monthly is fairly stable.
Required:
Discuss in terms of the “definition of Gross Income” and any special inclusion if the scenarios above relate to Gross Income. Consider the effects of any exemptions if applicable.