South Africa Case Law

Enviroserv Waste Management (Pty) Ltd v Commissioner for the South African Revenue Service (154/2022)

Enviroserv Waste Management (Pty) Ltd v Commissioner for the South African Revenue Service (154/2022) [2023] ZASCA 180; 87 SATC 1 (18 December 2023)

Court

Supreme Court of Appeal

Case number

154/2022

Judges

Dambuza, Zondi, Nicholls, Gorven, Mali

The Supreme Court of Appeal held that the landfill cells constructed by Enviroserv are used directly in a process similar to manufacture, as they facilitate the decomposition and chemical treatment of hazardous waste, resulting in leachate and non-hazardous waste. This process changes the character of the waste, qualifying the cells as 'plant' under s 12C(1)(a) of the Income Tax Act. The cells are not buildings under s 13 nor waste disposal assets under s 37B, as they are indispensable to the manufacturing process and not merely ancillary. The court further found that the Commissioner failed…

Source excerpt

• Income Tax Act Section 12c
• Depreciation Allowance
• Understatement Penalty
• Tax Administration Act Section 223
• Plant Vs Building
• Environmental Waste Management

ABC Trading v Commissioner for the South African Revenue Services (IT 25242)

ABC Trading v Commissioner for the South African Revenue Services (IT 25242) [2021] ZATC 26 (31 May 2021)

Court

Tax Court

Case number

IT 25242

Judges

Mali, S.C. Nhleko, T. Tsekoa

The Tax Court upheld additional assessments, disallowed depreciation and finance-charge deductions, confirmed a 100% understatement penalty, and ordered costs against the appellant.

• Income Tax Deductions
• Depreciation Allowance
• Connected Person Transactions
• Understatement Penalty
• Burden Of Proof
• Costs Order

ABC Trading v Commissioner for the South African Revenue Service (IT 25242)

ABC Trading v Commissioner for the South African Revenue Service (IT 25242) [2021] ZATC 16 (19 February 2021)

Court

Tax Court

Case number

IT 25242

Judges

Mali, S.C. Nhleko, T. Tsekoa

The Tax Court confirmed additional assessments, disallowed depreciation and finance-charge deductions, upheld a 100% understatement penalty, and awarded costs against the appellant.

• Income Tax Deductions
• Depreciation Allowance
• Connected Person Transactions
• Finance Charge Deduction
• Understatement Penalty
• Burden Of Proof