Pasito Trading Enterprises (Pty) Ltd v Gauteng Provincial Liquor Board (71044/13) [2016] ZAGPPHC 964 (22 November 2016)

Pasito Trading Enterprises (Pty) Ltd v Gauteng Provincial Liquor Board (71044/13) [2016] ZAGPPHC 964 (22 November 2016)

The court held that the Taxing Master erred by exercising discretion where none existed under the applicable rules. The determination of whether VAT should be allowed on a bill of costs depends on whether the successful party is out of pocket for the VAT paid, which in turn depends on the VAT registration status of the applicant, not the attorney. The Taxing Master should have allowed the applicant's attorney an opportunity to provide proof of the applicant's VAT status. The arrangement between the applicant and attorney did not affect the applicant's entitlement to claim VAT if not registered as a vendor. Disallowing VAT without affording the opportunity to prove VAT status was improper,...

Citation
[2016] ZAGPPHC 964
Parties
Applicant: Pasito Trading Enterprises (Pty) Ltd; Respondent: Gauteng Provincial Liquor Board
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
22 November 2016
Case Number
71044/13
Procedural Posture
Review Application / Review of Taxing Master's Decision on VAT in Bill of Costs
Outcome
Application for review granted; Taxing Master's decision set aside and matter remitted for reconsideration.
Judges
Bam
Legal Topics
Taxation of Costs, Value Added Tax, Party and Party Costs, Uniform Rules of Court, Costs Indemnity
Civil Procedure Taxation of Costs Value Added Tax Party and Party Costs Uniform Rules of Court Costs Indemnity

Case Brief

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Parties

Pasito Trading Enterprises (Pty) Ltd

Applicant

Gauteng Provincial Liquor Board

Respondent

Procedural Posture

Review Application / Review of Taxing Master's Decision on VAT in Bill of Costs

Legal Issues

  1. 1 Whether the Taxing Master was correct in disallowing VAT on the applicant's bill of costs.
  2. 2 Whether the VAT status of the attorney or applicant is relevant for taxation of costs.
  3. 3 Whether the Taxing Master exercised discretion properly in refusing an opportunity to prove VAT status.

Ratio Decidendi

The court held that the Taxing Master erred by exercising discretion where none existed under the applicable rules. The determination of whether VAT should be allowed on a bill of costs depends on whether the successful party is out of pocket for the VAT paid, which in turn depends on the VAT registration status of the applicant, not the attorney. The Taxing Master should have allowed the applicant's attorney an opportunity to provide proof of the applicant's VAT status. The arrangement between the applicant and attorney did not affect the applicant's entitlement to claim VAT if not registered as a vendor. Disallowing VAT without affording the opportunity to prove VAT status was improper,...

Court Disposition

Application for review granted; Taxing Master's decision set aside and matter remitted for reconsideration.

Orders

  • The Taxing Master's decision to disallow VAT on the Applicant's bill of costs is set aside.
  • The matter is remitted back to the Taxing Master to consider the taxation afresh.