According to CB 3 of the Income tax act 2007, an amount that person derives from carrying on or carrying out an undertaking or scheme entered into or devised for the purpose of making a profit is income of the person. To determine if something is considered income under CB 3 of the Income Tax Act 2007, we follow these guidelines: 1. Determine if there is a profit-making undertaking or scheme: This involves assessing whether there is a planned or designed series of steps with the objective of making a profit. The case law "Railway Timber Co Limited v. CIR" illustrates that an undertaking or scheme is typically not a one-off event but involves a series of planned actions. Merely realizing a capital asset does not automatically constitute a profit-making scheme. The taxpayer's decision to sell an asset in the most advantageous way does not, by itself, indicate a profit-making scheme. Eg, buying or selling an asset, unforeseen circumstance or selling purposely more than asset cost is not taxable and does not indicate a profit making scheme. In this case there is a profit...or no 2. People involvement: The presence of other parties involved in the transaction can support the existence of a profit-making scheme. The "Eunson v. CIR" case highlights that involvement with other persons can be a factor in determining a scheme - can be one person. In this case.... 3. talk about sufficeint level of activty...write about the third factor