South Africa Case Law

Taxpayer Trust Commissioner for the South African Revenue Service (IT 76795)

Taxpayer Trust Commissioner for the South African Revenue Service (IT 76795) [2025] ZATC 1 (13 January 2025)

Court

Tax Court

Case number

IT 76795

Judges

Myburgh AJ, Dr Alison Futter, Ms Sonja Jordaan

The court held that the raising fees paid by the taxpayer to Sanlam for arranging loan facilities are 'interest or similar finance charges' as envisaged by section 24J(1) of the Income Tax Act. The definition of 'interest' in section 24J is intentionally broad, encompassing not only traditional interest but also charges that bear a relevant resemblance to interest, such as raising fees. The court found that the raising fees are closely connected to the loans, are calculated as a percentage of the capital raised, and are a condition for drawing down the loans. Differences in timing, periodicit…

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• Deductibility Of Finance Charges
• Interpretation Of Interest
• Section 24j Income Tax Act
• Raising Fees
• Contra Fiscum Rule

XYC CC v Commissioner for the South African Revenue Service (IT14434/2019)

XYC CC v Commissioner for the South African Revenue Service (IT14434/2019) [2019] ZATC 10; 82 SATC 59 (28 June 2019)

Court

Tax Court

Case number

IT14434/2019

Judge

Twala M L

The Tax Court held that commercial building allowances not claimed in earlier years could not be claimed later under section 13quin, and upheld interest on unpaid tax.

• Commercial Building Allowance
• Income Tax Act Section 13quin
• Interest On Tax Arrears
• Year Of Assessment
• Contra Fiscum Rule
• Tax-law

Commissioner of the South African Revenue Services v Daikin Air Conditioning South Africa (Pty) Limited (185/2017)

Commissioner of the South African Revenue Services v Daikin Air Conditioning South Africa (Pty) Limited (185/2017) [2018] ZASCA 66; 80 SATC 330 (25 May 2018)

Court

Supreme Court of Appeal

Case number

185/2017

Judges

Maya P, Majiedt JA, Mbha JA, Van der Merwe JA, Davis AJA

The majority held that the Brussels Notes to the Harmonised System, specifically the amendment clarifying that indoor units may be mounted on ceilings, support the Commissioner's interpretation that split-system air conditioning machines with ceiling-mounted indoor units fall within subheading 8415.10. The statutory language, read with the explanatory notes, does not restrict the subheading to window or wall types only. A commercially sensible construction is preferred, as the machines in question are compressor operated, used for buildings, and have a rated cooling capacity not exceeding 8.8…

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• Customs And Excise Act
• Tariff Classification
• Interpretation Of Statutes
• Harmonised System
• Contra Fiscum Rule

Marshall and Others v Commission for the South Africa Revenue Service (CCT208/17)

Marshall and Others v Commission for the South Africa Revenue Service (CCT208/17) [2018] ZACC 11; 2018 (7) BCLR 830 (CC); 2019 (6) SA 246 (CC); 80 SATC 400 (25 April 2018)

Court

Constitutional Court

Case number

CCT208/17

Judges

Mogoeng, Zondo, Cameron, Froneman, Jafta, Kathree Setiloane, Kollapen, Madlanga, Mhlantla, Theron, Zondi

The Constitutional Court held that while evidence of consistent administrative interpretation may be relevant in marginal cases, it should not override the court’s duty to independently and objectively interpret legislation in accordance with constitutional principles. The Supreme Court of Appeal correctly interpreted the relevant sections of the Value Added Tax Act, finding that the Trust is liable for VAT on actual services supplied to provincial departments, and that subsidies received as a welfare organisation are subject to zero rating. The application for leave to appeal was dismissed d…

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• Value Added Tax Act
• Statutory Interpretation
• Judicial Deference
• Contra Fiscum Rule
• Fair Hearing Rights

AB CC v Commissioner for the South African Revenue Service (VAT 1005)

AB CC v Commissioner for the South African Revenue Service (VAT 1005) [2014] ZATC 4; 78 SATC 64 (9 December 2014)

Court

Tax Court

Case number

VAT 1005

Judge

N P Mali

The Tax Court held that housing rectification, rehabilitation and new-build services fell within the Housing Subsidy Scheme and qualified for zero-rated VAT.

• Value Added Tax
• Housing Subsidy Scheme
• Zero Rating
• Statutory Interpretation
• Contra Fiscum Rule
• Value-added-tax

NST Ferrochrome (Pty) Limited v Commissioner for Inland Revenue (526/97)

NST Ferrochrome (Pty) Limited v Commissioner for Inland Revenue (526/97) [2000] ZASCA 171 (25 May 2000)

Court

Supreme Court of Appeal

Case number

526/97

Judges

Scott, Hefer, Zulman, Plewman, Streicher

The Supreme Court of Appeal held that “any person” in the Income Tax Act’s connected-person definition includes a company, limiting the section 12C deduction.

• Income Tax Act
• Connected Person Definition
• Statutory Interpretation
• Contra Fiscum Rule
• Income-tax-act
• Connected-person