Commissioner for Inland Revenue v Collins (523/90) [1992] ZASCA 110; 1992 (3) SA 698 (AD); [1992] 2 All SA 294 (A) (1 June 1992)

Commissioner for Inland Revenue v Collins (523/90) [1992] ZASCA 110; 1992 (3) SA 698 (AD); [1992] 2 All SA 294 (A) (1 June 1992)

The respondent acquired the right to the property under the Cash Deed of Sale when the ten-day period for nomination expired without a valid nomination, thereby incurring liability for transfer duty under section 2 of the Transfer Duty Act. The subsequent nomination and substitution of the company as purchaser did not constitute cancellation of the transaction or dissolution by resolutive condition as contemplated by section 5(2)(a). The contract remained intact, and the respondent's rights and obligations were transferred but not extinguished. Therefore, the respondent is not relieved of liability for transfer duty. The appeal succeeds, and the application for a declaratory order is...

Citation
[1992] ZASCA 110
Parties
Appellant: Commissioner of Inland Revenue; Respondent: Russell Kenneth Collins
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
1 June 1992
Case Number
523/90
Procedural Posture
Civil Appeal / Appeal From Declaratory Order in the Durban and Coast Local Division
Outcome
Appeal upheld; application for declaratory order dismissed with costs.
Judges
Corbett, Botha, Van Heerden, Vivier, Van den Heever
Legal Topics
Transfer Duty, Nomination of Purchaser, Contractual Cancellation, Resolutive Condition, Delegation and Novation
Tax Law Land and Property Transfer Duty Nomination of Purchaser Contractual Cancellation Resolutive Condition Delegation and Novation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Commissioner of Inland Revenue

Appellant

Russell Kenneth Collins

Respondent

Procedural Posture

Civil Appeal / Appeal From Declaratory Order in the Durban and Coast Local Division

Legal Issues

  1. 1 Whether the respondent acquired property within the meaning of section 2 of the Transfer Duty Act.
  2. 2 Whether the subsequent nomination of a company as purchaser relieved the respondent of liability for transfer duty under section 5(2)(a) of the Act.
  3. 3 Whether the transaction was cancelled or dissolved by a resolutive condition as contemplated by section 5(2)(a).

Ratio Decidendi

The respondent acquired the right to the property under the Cash Deed of Sale when the ten-day period for nomination expired without a valid nomination, thereby incurring liability for transfer duty under section 2 of the Transfer Duty Act. The subsequent nomination and substitution of the company as purchaser did not constitute cancellation of the transaction or dissolution by resolutive condition as contemplated by section 5(2)(a). The contract remained intact, and the respondent's rights and obligations were transferred but not extinguished. Therefore, the respondent is not relieved of liability for transfer duty. The appeal succeeds, and the application for a declaratory order is...

Court Disposition

Appeal upheld; application for declaratory order dismissed with costs.

Orders

  • The order of the court a quo is set aside.
  • The application for a declaratory order is dismissed with costs.