Bob Cats Bob Cats carries on the business of a building contractor specialising in the building of shopping malls. Its financial year ends on the last day of February. On 31 January 2018 it completed the building of an upmarket shopping mall in the North coast. Under the building contract, - 70% of the contract price is due and payable on completion of the mall, and - 30% of the contract price is to be retained as retention moneys until a final certificate is issued by the engineer six months after the completion of the building. The contract price of the shopping mall is R10 000 000. (6)

Discuss, the scenario, whether the amounts referred to are gross income in the hands of the respective recipients. For amounts that have accrued to a taxpayer, the date of accrual must also be provided.