NST Ferrochrome (Pty) Limited v Commissioner for Inland Revenue (526/97) [2000] ZASCA 171 (25 May 2000)

NST Ferrochrome (Pty) Limited v Commissioner for Inland Revenue (526/97) [2000] ZASCA 171 (25 May 2000)

The Supreme Court of Appeal held that the expression 'any person' in subpara (d)(iv) of the definition of 'connected person' in section 1 of the Income Tax Act 58 of 1962 must be construed as including a company. The Court reasoned that the statutory definition of 'person' in both the Income Tax Act and the Interpretation Act encompasses companies unless the context dictates otherwise, which was not the case here. The Court rejected the appellant's arguments that the use of 'himself', references to members' interests, and the structure of the definition indicated an intention to restrict 'any person' to natural persons. The Court found that the language and context of the provision...

Citation
[2000] ZASCA 171
Parties
Appellant: NST Ferrochrome (Pty) Limited; Respondent: Commissioner for Inland Revenue
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
25 May 2000
Case Number
526/97
Procedural Posture
Civil Appeal / Appeal From Full Court of the Transvaal Provincial Division
Outcome
Appeal dismissed with costs.
Judges
Scott, Hefer, Zulman, Plewman, Streicher
Legal Topics
Income Tax Act, Connected Person Definition, Statutory Interpretation, Contra Fiscum Rule
Tax Law Commercial and Corporate Income Tax Act Connected Person Definition Statutory Interpretation Contra Fiscum Rule

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Parties

NST Ferrochrome (Pty) Limited

Appellant

Commissioner for Inland Revenue

Respondent

Procedural Posture

Civil Appeal / Appeal From Full Court of the Transvaal Provincial Division

Legal Issues

  1. 1 Whether the expression 'any person' in subpara (d)(iv) of the definition of 'connected person' in section 1 of the Income Tax Act 58 of 1962 includes a company.
  2. 2 Whether the deduction under section 12C should be calculated on the cost to Samancor or the amount paid by the appellant.
  3. 3 Whether the contra fiscum rule applies to the interpretation of 'any person' in this context.

Ratio Decidendi

The Supreme Court of Appeal held that the expression 'any person' in subpara (d)(iv) of the definition of 'connected person' in section 1 of the Income Tax Act 58 of 1962 must be construed as including a company. The Court reasoned that the statutory definition of 'person' in both the Income Tax Act and the Interpretation Act encompasses companies unless the context dictates otherwise, which was not the case here. The Court rejected the appellant's arguments that the use of 'himself', references to members' interests, and the structure of the definition indicated an intention to restrict 'any person' to natural persons. The Court found that the language and context of the provision...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.