South Africa Case Law

Commissioner of the South African Revenue Services v Cross Atlantic Properties (Pty) Ltd and Others (43580/2015)

Commissioner of the South African Revenue Services v Cross Atlantic Properties (Pty) Ltd and Others (43580/2015) [2017] ZAGPPHC 554 (4 August 2017)

Court

North Gauteng High Court, Pretoria

Case number

43580/2015

Judge

TJ Raulinga

The High Court rescinded a compromise sanction order, finding no valid preferent-creditor vote and that the applicant should have received notice.

• Companies Act Section 155
• Compromise With Creditors
• Rescission Of Order
• Joinder Of Parties
• Rule 42 Uniform Rules
• Tax Claims In Compromise

Tuning Fork (Pty) Ltd T/A Balanced Audio v Greeff and Another (18136/13)

Tuning Fork (Pty) Ltd T/A Balanced Audio v Greeff and Another (18136/13) [2014] ZAWCHC 78; 2014 (4) SA 521 (WCC); [2014] 3 All SA 500 (WCC) (28 May 2014)

Court

Western Cape High Court, Cape Town

Case number

18136/13

Judge

Rogers

The court held that the Companies Act 71 of 2008 does not contain an express or necessarily implied term preserving creditors’ rights against sureties in business rescue proceedings. The general principles of suretyship apply: if the principal debt is discharged by compromise or release, the surety is discharged unless the suretyship or the business rescue plan expressly preserves the claim against the surety. In this case, the business rescue plan provided for the payment of a dividend to concurrent creditors in full and final settlement of their claims against the company, with no provision…

Source excerpt

• Business Rescue
• Suretyship Liability
• Companies Act 2008
• Compromise With Creditors
• Release Of Debt
• Accessory Liability

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