South Africa Case Law

Comshipco Shiffahrtsagentur GmbH v Commissioner for South African Revenue Service (472/98)

Comshipco Shiffahrtsagentur GmbH v Commissioner for South African Revenue Service (472/98) [2001] ZASCA 24; 2001 (3) SA 38 (SCA) (19 March 2001)

Court

Supreme Court of Appeal

Case number

472/98

Judges

Vivier, Olivier, Streicher, Zulman, Mpati

Address commission paid by a disponent owner to charterers under charterparty agreements does not qualify as marketing expenditure deductible under section 11 bis (4)(f) of the Income Tax Act 58 of 1962. The commission is not paid for the procurement of orders for services from persons based in an export country, but rather as remuneration for port services rendered by the charterers after the conclusion of the charterparty. The statutory provision requires that the expenditure be incurred directly for commission or remuneration for orders for services, which is not the case with address comm…

Source excerpt

• Income Tax Deduction
• Marketing Allowance
• Address Commission
• Export Service Industry