You are required to explain, giving full, but brief reasons, whether or not the amounts mentioned in each of the scenarios below will be included in the recipient's gross income for the 2024 year of assessment. Consider any exemptions, where applicable.
1.1 Ben, a resident of the Republic, operates a small business in South Africa manufacturing toys. The following items relate to the 2024 year of assessment:
During May 2023, Ben sold toys that he had manufactured in South Africa to a dealer in Botswana for a cash price of R70 000.
During September 2023, Ben was paid a non-refundable deposit of R35 000 from a customer for a delivery of toys in October 2023
Ben gambled at a local casino-his net winnings were R250 000.
Ben invested R75 000 in September 2023 in a fixed deposit in a financial institution in Brazil. The interest earned amounted to R5 750 monthly.
1.2 Mr and Mrs Kumar were employed at the security agency in the 2024 year of assessment. Mr Kumar was required to wear his security uniform on a daily basis and was given R1 000 per month for a uniform allowance. Mrs Kumar, was employed as the marketing assistant was given a clothing allowance of R500 per month.
1.3 Thomas, a South African resident moved from Cape Town to Johannesburg on 1 December 2023. He works as an accountant for ABC Stationers and relocated to the branch in Johannesburg. He was given R75 000 which is equivalent to 3 months' salary. He has been an employee since 2020, and his company incurred the following costs:
Cost of his flight-R7 650
Accommodation at the hotel paid by employer for December 2023-R15 000
Transportation costs to move all his furniture from Cape Town to Johannesburg-R11000
Painting bought for entrance - R4 500
1.4 Amy owns a butchery in Durban and rents out spit braais and other braai equipment on weekends. Due to high demand for her braai equipment, Amy insists that a deposit of 50% of the rental value is paid. If a customer cancels the order, the deposit is forfeited. During February 2024 Amy received deposits amounting to R10 000 for equipment to be delivered in March 2024.
