Commissioner for Inland Revenue v Van der Merwe and Others (249/99)
Commissioner for Inland Revenue v Van der Merwe and Others (249/99) [2001] ZASCA 10; [2001] 3 All SA 53 (A); 2001 (3) SA 1 (SCA) (9 March 2001)
The Supreme Court of Appeal held that the liquidation of a class of insurance business under the Insurance Act does not create a separate legal entity for tax purposes. Both assets and liabilities of the business in liquidation remain those of the company, with only control and administration passing to the liquidator. Consequently, all income earned during liquidation accrues to the company, which remains the taxpayer under the Income Tax Act. The overpayment of provisional tax, although calculated with reference to the short term business, was not earmarked as an asset of that business and…
Source excerpt
- Income Tax Liability
- Insurance Company Liquidation
- Asset Segregation
- Overpayment Recovery