oa De Rebus - Tax law - payments by an employer to an employee in terms of an agreement in restraint of trade: a cautionary note
|Article Title||Tax law - payments by an employer to an employee in terms of an agreement in restraint of trade: a cautionary note|
|© Publisher:||Law Society of South Africa|
|Publication Date||Apr 1980|
|Pages||193 - 195|
|Keyword(s)||Compensation, Competing, Contractual right, Goodwill, Income-producing structure, Liable to tax, Production of income, Restraint, Right to trade and Sterilization of capital|
The capital nature of a payment received by an employee for undertaking a restraint is examined by the author. The writer points out several pitfalls and discusses cases from which it is clear that each case must depend upon its own circumstances but it cannot be unreservedly accepted that a payment made by an employer to an employee in terms of an agreement in restraint of trade implies the sterilization of a capital asset and the receipt of a capital nature.
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