Siyahamba Events (Pty) Ltd (Siyahamba) is a South African incorporated company specialising in organizing corporate functions. On 10 March 2023, they received a R10 000 deposit from a client that requires a DJ (disk jockey) to perform at an event taking place on 2 April 2023. In terms of the contract that Siyahamba issues to all their clients, a 50% deposit of the full fee is payable to secure a DJ and a date. The outstanding fee is payable on the day of the event. The deposit is non-refundable should the event be cancelled by the client.

Siyahamba has a 31 March year-end.

REQUIRED:

MARKS

Discuss whether the receipt of the R10 000 deposit would constitute gross income of Siyahamba (Pty) Ltd as defined in the Income Tax Act 58 of 1962 for the year of assessment ending 31 March 2023. List all the requirements, discuss and apply each one and briefly refer to case law to strengthen your argument.