City of Tshwane Metropolitan Municipality v Cable (Pty) Ltd (34431/2005)
City of Tshwane Metropolitan Municipality v Cable (Pty) Ltd (34431/2005) [2008] ZAGPHC 11 (18 January 2008)
The court held that the plaintiff, a municipal council, was not lawfully empowered to estimate and assess the defendant's liability for regional services and establishment levies in the absence of returns, as paragraph 11(1) of Government Notice R340 was ultra vires the empowering statute. The relevant legislation only authorised the Commissioner for Inland Revenue to estimate levy liability, not the council. The plaintiff's assessment was arbitrary, based on factors unrelated to the defendant's enterprise, and the refusal to provide reasons further undermined its validity. The approach adopt…
Source excerpt
- Regional Services Levy
- Ultra Vires
- Arbitrary Assessment
- Constitutional Validity