Comshipco Shiffahrtsagentur GmbH v Commissioner for South African Revenue Service (472/98) [2001] ZASCA 24; 2001 (3) SA 38 (SCA) (19 March 2001)

Comshipco Shiffahrtsagentur GmbH v Commissioner for South African Revenue Service (472/98) [2001] ZASCA 24; 2001 (3) SA 38 (SCA) (19 March 2001)

Address commission paid by a disponent owner to charterers under charterparty agreements does not qualify as marketing expenditure deductible under section 11 bis (4)(f) of the Income Tax Act 58 of 1962. The commission is not paid for the procurement of orders for services from persons based in an export country, but rather as remuneration for port services rendered by the charterers after the conclusion of the charterparty. The statutory provision requires that the expenditure be incurred directly for commission or remuneration for orders for services, which is not the case with address commission. The court found that the appellant's payments were not for services rendered in obtaining...

Citation
[2001] ZASCA 24
Parties
Appellant: Comshipco Shiffahrtsagentur GmbH; Respondent: Commissioner for South African Revenue Service
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
19 March 2001
Case Number
472/98
Procedural Posture
Civil Appeal / Appeal From the Natal Income Tax Special Court
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Vivier, Olivier, Streicher, Zulman, Mpati
Legal Topics
Income Tax Deduction, Marketing Allowance, Address Commission, Export Service Industry
Tax Law Commercial and Corporate Income Tax Deduction Marketing Allowance Address Commission Export Service Industry

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 3 Authorities cited 5 Party arguments 2
Sign in to unlock

Parties

Comshipco Shiffahrtsagentur GmbH

Appellant

Commissioner for South African Revenue Service

Respondent

Procedural Posture

Civil Appeal / Appeal From the Natal Income Tax Special Court

Legal Issues

  1. 1 Whether address commission paid by a disponent owner to charterers qualifies as marketing expenditure deductible under section 11 bis (4)(f) of the Income Tax Act 58 of 1962.
  2. 2 Whether such commission constitutes commission or remuneration for orders for services obtained from persons based in an export country.

Ratio Decidendi

Address commission paid by a disponent owner to charterers under charterparty agreements does not qualify as marketing expenditure deductible under section 11 bis (4)(f) of the Income Tax Act 58 of 1962. The commission is not paid for the procurement of orders for services from persons based in an export country, but rather as remuneration for port services rendered by the charterers after the conclusion of the charterparty. The statutory provision requires that the expenditure be incurred directly for commission or remuneration for orders for services, which is not the case with address commission. The court found that the appellant's payments were not for services rendered in obtaining...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.