Motsepe v Commissioner for Inland Revenue (CCT35/96) [1997] ZACC 3; 1997 (6) BCLR 692; 1997 (2) SA 897 (27 March 1997)

Motsepe v Commissioner for Inland Revenue (CCT35/96) [1997] ZACC 3; 1997 (6) BCLR 692; 1997 (2) SA 897 (27 March 1997)

The Constitutional Court held that the referral was defective because the constitutionality of sections 92 and 94 of the Income Tax Act was not decisive for the sequestration application. On the facts, the Commissioner had affirmatively established the joint estate's indebtedness and insolvency, and Mrs Motsepe had not genuinely disputed the correctness of the assessments or pursued available remedies under the Act. Even if the impugned sections were invalid, Mrs Motsepe would be in no better position to resist the claim. The Court further held that constitutional issues should not be decided where non-constitutional remedies are available and have not been exhausted. The referral was...

Citation
[1997] ZACC 3
Parties
Applicant: Mmampobane Elizabeth Motsepe; Respondent: Commissioner for Inland Revenue
Court
Constitutional Court
Jurisdiction
South Africa
Judgment Date
27 March 1997
Case Number
CCT35/96
Procedural Posture
Constitutional Referral / Referral From High Court Under Section 102(1) of the Interim Constitution
Outcome
Referral rejected with costs awarded against the applicant.
Judges
Ackermann, Chaskalson, Didcott, Goldstone, Kriegler, Langa, Madala, Mokgoro, O'Regan, Sachs
Legal Topics
Income Tax Assessment, Constitutional Referral, Access to Court, Administrative Fairness, Sequestration Proceedings, Costs Award
Constitutional Law Tax Law Civil Procedure Income Tax Assessment Constitutional Referral Access to Court Administrative Fairness Sequestration Proceedings +1 more

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Parties

Mmampobane Elizabeth Motsepe

Applicant

Commissioner for Inland Revenue

Respondent

Procedural Posture

Constitutional Referral / Referral From High Court Under Section 102(1) of the Interim Constitution

Legal Issues

  1. 1 Whether sections 92 and 94 of the Income Tax Act 58 of 1962 are unconstitutional for denying taxpayers the right to challenge assessments in sequestration proceedings.
  2. 2 Whether the referral to the Constitutional Court met the requirements of section 102(1) of the interim Constitution.
  3. 3 Whether Mrs Motsepe had non-constitutional remedies available under the Act to challenge the assessments.

Ratio Decidendi

The Constitutional Court held that the referral was defective because the constitutionality of sections 92 and 94 of the Income Tax Act was not decisive for the sequestration application. On the facts, the Commissioner had affirmatively established the joint estate's indebtedness and insolvency, and Mrs Motsepe had not genuinely disputed the correctness of the assessments or pursued available remedies under the Act. Even if the impugned sections were invalid, Mrs Motsepe would be in no better position to resist the claim. The Court further held that constitutional issues should not be decided where non-constitutional remedies are available and have not been exhausted. The referral was...

Court Disposition

Referral rejected with costs awarded against the applicant.

Orders

  • The referral is rejected with costs, including the costs attendant upon the employment of two counsel on the Commissioner's behalf.
  • The matter is referred back to the Transvaal Provincial Division of the High Court to be dealt with in the light of this judgment.