Advise on how much would be included in Mrs Kane's gross income for the 2021 year of assessment. Support your advice with reference to legislation and calculations.

Structure the explanation to the following headings:

(i)Amount to be included in Mrs Kane's gross income in terms of sales

(ii)Amount to be included in Mrs Kane's gross income in terms of the deposit

(iii)Amount to be included in Mrs Kane's gross income in terms of the refund arrangement

Relevant information:

Mrs Kane, a 29-year-old South African resident for tax purposes, is an independent distributor of HerbLife Limited ('HerbLife') nutritional products. She receives the nutritional products on consignment from HerbLife which she then sells. Her customers pay her directly and she pays over 80% of the value collected to HerbLife and retains 20% of the value for herself as per the contract between Mrs Kane and HerbLife.

During the 2021 year of assessment Mrs Kane made sales of nutritional products to the value of R60 000 which she collected from customers and paid relevant portions to HerbLife. In addition, she received a 10% deposit from a customer to secure a large order amounting to R12 000. Mrs Kane did not deliver the goods to the customer until April 2021 when she received the balance of the selling price due. Mrs Kane had not paid over any portion of the deposit received to HerbLife by 28 February 2021.

Due to the tough economic conditions, on 1 February 2021 Mrs Kane promised her current customers that she would refund two percent of the value of their February purchases if they referred two potential customers to her in March. HerbLife allows for this arrangement to be made provided the refund is funded out of Mrs Kane's own pocket. Mrs Kane made sales to the value of R8 000 (already accounted for in the R60 000  in February 2021.