South Africa Case Law

Commissioner for Inland Revenue v Datakor Engineering (Pty) Ltd. (405/96)

Commissioner for Inland Revenue v Datakor Engineering (Pty) Ltd. (405/96) [1998] ZASCA 71; 1998 (4) SA 1050 (SCA); [1998] 4 All SA 414 (A) (21 September 1998)

Court

Supreme Court of Appeal

Case number

405/96

Judges

Nienaber, Harms, Zulman, Melunsky, Ngoepe

The court held that converting creditors’ claims into redeemable preference shares was a compromise benefit that reduced the taxpayer’s assessed loss under the Income Tax Act.

• Assessed Loss Reduction
• Compromise With Creditors
• Redeemable Preference Shares
• Onus Of Proof
• Schemes Of Arrangement
• Assessed-loss-reduction