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Jabu Mhlongo, a resident of the Republic operates a small arts and crafts business in Hout Bay, Cape Town. The following items relate to the
Jabu Mhlongo, a resident of the Republic operates a small arts and crafts business in Hout Bay, Cape Town.
The following items relate to the year of assessment:
During May Jabu sold supplies to a dealer in Mozambique for a cash price of R
Jabu sold some arts and crafts that had been in his family for generations. He had been using it in his
home. He sold it for cash for R
During February Jabu was paid a nonrefundable deposit of R from a customer for items
to be delivered to her in Tshwane during March
During June Jabu travelled to Swaziland and carried out work on antique paintings and
homeware. A debt of R for his work was still outstanding on February
While in Swaziland, Jabu gambled at a local casino. His net winnings were R
He invested R of his winnings in a sixmonthly fixed deposit in a financial institution in
Swaziland. Interest calculated at per annum for the six months ended December was
credited to his bank account in South Africa. It is payable every six months.
Required:
Briefly discuss, giving full reasons, whether the above amounts will be included in Jabu Mhlongos gross
income for the year of assessment. Ignore capital gains tax.
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