Money or any other corporeal or incorporeal property which have an ascertainable money value Case law: CSARS vs Brummeria & CIR v Butcher Bros

What triggers receipt of an amount? – General rule - When a taxpayer can use the amount for their own benefit; (Case law Geldenhuys vs CIR 1947) - Deposits on returnable containers generally meet the received by criteria.

What triggers accrual? - When a taxpayer becomes entitled to an amount. For e.g. a taxpayer is entitled to a debtor which is not yet due and receivable. - Case Law – Lategan v CIR, Delfos’s case

Partnership income deemed to accrue to individual partners of the partnership; Income accruing from assets donated to a minor child, deemed to be received by the parent;

For income to be taxable in Zimbabwe it has to be from a source within Zimbabwe. - Source of receipts is determined with the originate course of the receipts being received as income (CIR v Lever Bros) Specific Source Requirements: - Directors fees – location of headquarters of the Co. - International Trade – where the domineering income generating activities are done. Transvaal v COT Botswana. - Services rendered – where the services have been rendered. - Rental income – location of the immovable property

Sale of goods – if contract was concluded in Zimbabwe source is deemed to be Zimbabwe; Income from services rendered – If services are rendered outside Zimbabwe from Zimbabwe trading operations the source is deemed to be Zimbabwe; Employment services – if rendered during temporary absence from Zimbabwe, source is deemed to be Zimbabwe; Foreign interest and dividends – deemed to be from Zimbabwe If accrued to tax payer ordinarily resident in Zimbabwe. Purchased annuity – if from a source outside Zimbabwe shall be deemed to be from a source with Zimbabwe if recipient was ordinarily resident in Zimbabwe when the purchased the annuity

Generally apply the tree and the fruit test. General receipts from once of transactions are capital in nature whilst those from continuous trading activities are revenue in nature; In certain instances the intention of the taxpayer may influence determination between capital and revenue; Specific considerations: - Restraint of trade – generally capital in nature; - Damages and compensation – if compensation is for the tree then proceeds are capital in nature. (hole in profits vs hole in fixed assets test)