City Power (SOC) Limited v Commissioner for the South African Revenue Service (1147/2019)
City Power (SOC) Limited v Commissioner for the South African Revenue Service (1147/2019) [2020] ZASCA 150; 2022 (1) SA 121 (SCA); 83 SATC 523 (20 November 2020)
City Power is a state-owned company and not a municipality as defined in the Income Tax Act or the Constitution. The statutory definition of 'municipality' is confined to organs of state exercising legislative and executive authority within a demarcated area, which City Power does not satisfy. The legislative history and explanatory memoranda confirm that only municipalities, not municipal entities or companies owned by municipalities, are exempt from normal tax under section 10(1)(a) and (b). City Power's independent board, commercial operations, and ability to generate profit further distin…
Source excerpt
- Income Tax Exemption
- Municipal Entities
- Interpretation Of Statutes
- Constitutional Spheres Of Government