Avenant v Commissioner for the South African Revenue Service (367/2015)
Avenant v Commissioner for the South African Revenue Service (367/2015) [2016] ZASCA 90; 78 SATC 343 (1 June 2016)
The court held that grapes delivered to a co-operative, pressed into pulp and mixed with other members' pulp, retain their identity as 'produce' for the purposes of the Income Tax Act. The transformation into pulp and commencement of fermentation do not remove the produce from the ambit of farming operations or render it work-in-progress outside the definition of 'produce'. Fractional ownership in the pooled pulp does not absolve the appellant from accounting for closing stock, as ownership is retained pro rata to the contribution. The value of such produce need not be market value but must b…
Source excerpt
- Income Tax Act
- Farming Operations
- Produce Valuation
- Closing Stock
- Ownership Of Pooled Produce