Hilary: Lump sum from Bernies Bakery:
As per definition of Section 1: Gross Income in the Income Tax Act: any amount that is received by a taxpayer in respect of services rendered or by virtue of any employment of holding any office will form part of the taxpayers gross income and be included and taxable as per the tax tables.
The amount of R10 000 received by Hilary was received in the year of assessment, the value is in monetary terms (cash amount of R10 000), she received the amount unconditionally (unconditional entitlement: it was hers in the year of assessment and benefited her in the year of assessment), and she would have not received that amount had she not been employed by the Bakery. The relationship of Hilary to the Bakery 's
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The intention stated was to 'sell the ovens at a profit ' and not simply to achieve the greatest gains possible. The effect of this is that the old ovens will be de recognized as capital assets and treated as accordingly with Capital Gains Tax(not further discussed) and will then be required as trading stock, at the value it was acquired for (the old cost price plus repair costs undertake to repair it). The amount will be included as a S23(3) in terms of the Income Tax Act, and any compensation received in the year of assessment or in the future years of assessment, will be received and included in Gross Income(in terms of not of a capitals nature: Section …show more content…
This principle comes from Joffee & Co (Pty) Ltd c CIR (1946 AD), where the taxpayers trade was carried on by engineers reinforcing concrete. The construction collapsed resulting in damages paid to an injured employee. The court held that the construction of buildings should not result in them collapsing as an 'inevitable con commitment ' and will not form part of the trade carried on, therefore will not be deductible.
A similar case, ITC 49 (1926) a ya payer sold petrol lamps and the result of one of them exploding met the definition of s deduction- the trade to be carried on could result in the explosiveness of the lamp due to the nature of the business and was in fact an inevitable concomitant of the business type. The damages were
ARB43, Ch.4, Par.9 ?Where evidence indicates that cost will be recovered with an approximately normal profit upon sale in the ordinary course of business, no loss should be recognized...?
Perhaps the most interesting case study of cause and effect is that which applies to the grocery industry in the United States. Events like a hurricane can affect the supply of food and other perishable items found at the local grocer. There are also other causes that can influence this fluctuation in supply, such as food recalls, or a company going bankrupt.
Landowners frequently cultivated their land themselves but might employ a husbandman or let it. The husbandman was bound to carry out the proper cultivation, raise an average crop and leave the field in good condition. In case the crop failed the Code fixed a statutory return.4 Land might be let at a fixed rent when the Code enacted that accidental loss fell on the tenant. If let on share-profit, the landlord and tenant shared the loss proportionately to their stipulated share of profit. If the tenant paid his rent and left the land in good condition, the landlord could not interfere nor forbid subletting. Wasteland was let to reclaim, the tenant being rent-free for three years and paying a stipulated rent...
Nancy Silverton was 18, studying liberal arts at California State University in Sonoma when she began cooking in a vegetarian kitchen in her dorm. When she realized this was her passion, she apprenticed at a small California restaurant and went on to Le Cordon Bleu in London. She came back to LA and became an assistant pastry chef at a place called Michaels restaurant in Santa Monica CA.
2. Mel owns a neighborhood grocery store that he would like to sell. Katrina is interested in purchasing the business, but she is concerned because she knows that Mel has built up a lot of goodwill over the years, and she wonders whether Mel might not just open another store down the block and take all of the business from the old store with him. Katrina asks for and receives from Mel a clause in the sales agreement that Mel will not open another grocery store within a 150-mile radius of the old store for a period of at least ten
According to the Panera Bread website (2011), the company mission is simply “A loaf of bread in every arm.” (para 7).
Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
The Cheesecake Factory brings authenticity to many people around the world. It began from a 1940s newspaper recipe, that later turned into a dream. Accomplished by a woman and her family with desires to succeed in their business. At The Cheesecake Factory Incorporated majority of their employees say it’s a great workplace. It is known for it’s tasty cheesecakes and it’s enticing meals. The Cheesecake Factory is not just an amazing place to dine at for their pastry, but their restaurants cuisine is highly favored.
value of that property to be much lower. Since the property was a dilapidated building in a bad
Although verbal agreements for the sale of goods more than $500 are not valid, there is an exception to this because these goods were specially manufactured. In order for a goods to be specially manufactured, the goods have to be particularly for the buyer, unacceptable for others, seller had commitment for the manufacturing of the goods and a reasonable commitment stating the goods are only for the buyer. Therefore, these categories of specially manufactured goods proved that Kalas won the
Overall, Whole Foods Market is financially strong even though gross margins may fall in the future. According to Bradley Seth McNew, Whole Foods Market is in the best cash position of any of its competitors. With almost zero debt, Whole Foods' operating cash flow could cover its long-term debt more than 246 times. Compare that to just 0.62 times for Sprouts Farmers Market, which has over $400 million in debt with only $180 million in operating cash flow (McNew, 2015).
This case examines issues of asset control for Ben & Jerry’s Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer‘s Grand, Unilever, and Meadowbrook Lane Capital in January 2000.
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
My family and I often visit family in Chicago, and when we do, we always go to the Oak Mill Bakery. Every time we have gone we are greeted with spectacular customer service and mouthwatering treats. The bakery specialty is European style baked goods and has been in business since 1986 (Oak Mill Bakery, n.d.). Oak Mill strives to use all natural ingredients, which is one on of the reasons my family makes an effort to visit every time we are in town. The bakery serves cakes, cookies, cupcakes in many different styles. As noted before, they have a European twist to all their sweets, which makes them mouthwatering and unforgettable.
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.