Capstone 556 (Pty) Limited v Commissioner For The South African Revenue Service (A49/14)
Capstone 556 (Pty) Limited v Commissioner For The South African Revenue Service (A49/14) [2014] ZAWCHC 123; 2014 (6) SA 195 (WCC); 77 SATC 1 (26 August 2014)
The court found that the JDG shares were acquired and held by the appellant as a capital asset, not as trading stock in pursuit of a profit-making scheme. The evidence demonstrated that the acquisition was part of a strategic rescue operation in the furniture industry, with a long-term commitment and substantial risk, and no short-term intention to sell. The subsequent decision to sell was opportunistic, prompted by external factors and did not constitute a change of intention to convert the asset into trading stock. Accordingly, the proceeds from the disposal of the shares were of a capital…
Source excerpt
- Income Tax Assessment
- Capital Vs Revenue Distinction
- Deductibility Of Expenditure
- Capital Gains Tax
- Borrowing Costs
- Intention Of Taxpayer