Wyner v Commissioner for The SA Revenue Service (291/01) [2002] ZAWCHC 12; 2002 (4) SA 744 (C); 64 SATC 254 (8 March 2002)

Wyner v Commissioner for The SA Revenue Service (291/01) [2002] ZAWCHC 12; 2002 (4) SA 744 (C); 64 SATC 254 (8 March 2002)

The court found that the appellant's sale of the property was not part of a profit-making scheme but rather a compelled act to salvage her investment due to financial inability to retain the property. The appellant's intention was not to trade or profit but to recover her investment in circumstances beyond her control. The mix of private rights and public policy considerations gave her a claim to the property close to ownership, and the proceeds from the sale were therefore of a capital nature, not revenue. The appellant discharged the onus of showing that the proceeds were a capital receipt, and the assessment taxing her on the receipt should not have been confirmed.

Citation
[2002] ZAWCHC 12
Parties
Appellant: C M Wyner; Respondent: Commissioner for The South African Revenue Service
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
8 March 2002
Case Number
291/01
Procedural Posture
Civil Appeal / Appeal From the Special Court for Income Tax Appeals
Outcome
Appeal upheld with costs, including costs of senior counsel.
Judges
JH Conradie, HC Nel, AP Blignault
Legal Topics
Capital Vs Revenue Receipt, Income Tax Assessment, Sale of Immovable Property, Intention of Taxpayer
Tax Law Land and Property Capital Vs Revenue Receipt Income Tax Assessment Sale of Immovable Property Intention of Taxpayer

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 4 Authorities cited 5 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

C M Wyner

Appellant

Commissioner for The South African Revenue Service

Respondent

Procedural Posture

Civil Appeal / Appeal From the Special Court for Income Tax Appeals

Legal Issues

  1. 1 Whether the proceeds from the sale of erf 484 Clifton by the appellant constituted gross income or capital receipt for tax purposes.
  2. 2 Whether the appellant's intention and circumstances surrounding the sale indicate a profit-making scheme or a salvage of investment.

Ratio Decidendi

The court found that the appellant's sale of the property was not part of a profit-making scheme but rather a compelled act to salvage her investment due to financial inability to retain the property. The appellant's intention was not to trade or profit but to recover her investment in circumstances beyond her control. The mix of private rights and public policy considerations gave her a claim to the property close to ownership, and the proceeds from the sale were therefore of a capital nature, not revenue. The appellant discharged the onus of showing that the proceeds were a capital receipt, and the assessment taxing her on the receipt should not have been confirmed.

Court Disposition

Appeal upheld with costs, including costs of senior counsel.

Orders

  • The appeal is upheld.
  • The assessment taxing the appellant on the proceeds of the sale is set aside.