Tax: The Pac-Man of funding received from the crowd

Small businesses often struggle to get funding due the lack of collateral. Alternative funding, such as crowdfunding, became increasingly popular after financial crisis in 2008. The objective study was determine if received by from alternative sources is subject income tax South Africa. A legal doctrinal research approach applied reviewing available literature, legislation and relevant case law Africa, United States America, Kingdom Australia. It determined that existing provisions do not specifically refer crowdfunding principles laid down decided need be considered amount received, a gift made out pure generosity. likely fall within ambit ‘gross income’ project owner donor expected nothing return used supplement trading activities. With reward-based highly gross since something for provided business. imperative Africa issues application guidance reflect intended meaning legislature regarding treatment owners. Contribution: This article demonstrated it