Die inkomstebelastinggevolge van verpoeling by landboukoöperasies met spesifieke verwysing na koöperatiewe wynkelders

[摘要] Many co-operative societies make use of a system of pooling the producedelivered to it by its members. The delivered produce is thrown into onecommon stock and its identity is lost in the process. Each season's harvestwould normally form a separate pool. The co-operative keeps record of all thepool transactions in the form of a pool account. In short these transactionsconsist of the proceeds from the sale of the pooled mass, commission chargedby the co.:.operative, expenses incurred in the processing and marketing of theproducts, as well as advances to the members. The surplus of the pool accountis divided among the members at the closing of the account, in proportion totheir contributions to that specific pool. Each member's share in the surplus isreduced by advances already received.In practice, only the advances and the final share of the surplus, reduced byadvances already received, are included in the taxable income of the members.Realised sales, not yet distributed to the members are therefore not included inthe taxable income of the members, nor of the co-operative society. The valueof unsold pool stock at year end is further not included in the taxable income ofthe individual members, nor of the co-operative society.In this study, the treatment of co-operative pools from an income taxperspective is investigated in order to determine whether the treatment inpractice is a correct reflection of the law.The study first gives a general background of the co-operative society as a formof a business enterprise. This is necessary in order to understand the creationof co-operative pools. The study further deals specifically with co-operative pools and the income tax consequences thereof. The following aspects arediscussed:(a) The legal nature and consequences of pooling are investigated. The rightsand obligations between the relevant parties will determine the income taxconsequences. The study concentrates on whether ownership of theproduce is transferred to the co-operative society as well as theimplications in law of the mixing of all the produce and the furtherprocessing thereof. The capacity in which the co-operative processes anddisposes of the products are also investigated.(b) A discussion is also given on whether the participants of a particular poolform an association of persons. Certainty in this regard is necessarybefore the income tax consequences of pooling for the co-operativesociety or the individual members can be discussed. An association ofpersons is regarded as a person for income tax purposes and is thereforea separate taxpayer. A partnership will, however, not be a separatetaxpayer. As the circumstances with pooling resembles that of apartnership, the legal requirements of partnerships are also investigated.(c) The income tax consequences of pooling for the co-operative society aswell as the individual members are discussed in detail. The conclusionsare reached by applying the general income tax principals, as laid downby the courts, on the circumstances that exist with pooling. The fact thatthe members are co-owners of the pooled mass and the co-operativesociety is regarded as the irrevocable agent of the members, has asignificant influence on the income tax consequences.From the above, the conclusion is reached that the income tax treatment ofpooling in practice, is a correct reflection of the law, not only in respect ofreceipts and accruals, but also in respect of the treatment of unsold pool stock.

[发布机构] Stellenbosch University