Petrus v Berdina (68708/13) [2015] ZAGPPHC 802 (24 November 2015)

Petrus v Berdina (68708/13) [2015] ZAGPPHC 802 (24 November 2015)

The court found that the respondent undertook to pay the applicant R5,000,000.00 in terms of the divorce settlement agreement, with no provision for deduction of tax from the pension benefit. The deduction of R567,000.00 for tax from the R2,000,000.00 pension payment resulted in the applicant receiving less than the agreed amount. The respondent remains liable to make good the deficit occasioned by the tax deduction to fulfill his contractual obligation. The Tax Act does not prohibit spouses from agreeing to a specific amount, nor does it excuse the respondent from his obligation under the agreement. The court further held that SARS and Sanlam need not be joined, as the dispute concerns...

Citation
[2015] ZAGPPHC 802
Parties
Respondent: Vorster Gabriel Jakobus Petrus; Applicant: Vorster Frederika Berdina
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
24 November 2015
Case Number
68708/13
Procedural Posture
Civil Application / Judgment After Application for Declaratory and Monetary Relief
Outcome
Application granted in part; respondent declared liable for the tax deficit and ordered to pay the applicant R567,000.00 plus interest and costs.
Judges
M F Legodi
Legal Topics
Divorce Settlement, Pension Interest, Tax Liability on Divorce, Interpretation of Contract, Non Joinder
Family and Children Civil Procedure Divorce Settlement Pension Interest Tax Liability on Divorce Interpretation of Contract Non Joinder

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Parties

Vorster Gabriel Jakobus Petrus

Respondent

Vorster Frederika Berdina

Applicant

Procedural Posture

Civil Application / Judgment After Application for Declaratory and Monetary Relief

Legal Issues

  1. 1 Whether the respondent is liable to pay the applicant the amount deducted as tax from the pension benefit under the divorce settlement agreement.
  2. 2 Whether the applicant is liable to SARS for the tax deducted from the pension benefit.
  3. 3 Whether SARS and Sanlam should have been joined as parties to the application.

Ratio Decidendi

The court found that the respondent undertook to pay the applicant R5,000,000.00 in terms of the divorce settlement agreement, with no provision for deduction of tax from the pension benefit. The deduction of R567,000.00 for tax from the R2,000,000.00 pension payment resulted in the applicant receiving less than the agreed amount. The respondent remains liable to make good the deficit occasioned by the tax deduction to fulfill his contractual obligation. The Tax Act does not prohibit spouses from agreeing to a specific amount, nor does it excuse the respondent from his obligation under the agreement. The court further held that SARS and Sanlam need not be joined, as the dispute concerns...

Court Disposition

Application granted in part; respondent declared liable for the tax deficit and ordered to pay the applicant R567,000.00 plus interest and costs.

Orders

  • It is declared that the respondent is indebted to the applicant in the amount of R567,000.00.
  • The respondent must pay the applicant R567,000.00.