South Africa Case Law

Erasmus v Commissioner for the South African Revenue Service (9706/21)

Erasmus v Commissioner for the South African Revenue Service (9706/21) [2023] ZAWCHC 215; [2024] 1 All SA 153 (WCC); 86 SATC 56 (18 August 2023)

Court

Western Cape High Court, Cape Town

Case number

9706/21

Judge

M Sher

The High Court refused to exempt a taxpayer from using SARS objection and appeal remedies in a GAAR dispute, and struck the review from the roll.

• Impermissible Tax Avoidance
• General Anti Avoidance Rule
• Dividends Tax
• Understatement Penalty
• Exhaustion Of Internal Remedies
• Exceptional Circumstances

ICR Utility Management Proprietary Ltd and Another v Headbush and Others (1213/2020)

ICR Utility Management Proprietary Ltd and Another v Headbush and Others (1213/2020) [2021] ZAECPEHC 31 (25 May 2021)

Court

Eastern Cape High Court, Port Elizabeth

Case number

1213/2020

Judge

Govindjee

The High Court held that a dividends-tax dispute under a share buyback agreement had to go to arbitration, and dismissed the application with costs.

• Dividends Tax
• Withholding Agent Liability
• Contractual Interpretation
• Arbitration Clause
• Dividends-tax
• Withholding-agent-liability

ABC Proprietary Limited v Commissioner for the South African Revenue Services (14287)

ABC Proprietary Limited v Commissioner for the South African Revenue Services (14287) [2019] ZATC 9; 82 SATC 144 (12 June 2019)

Court

Tax Court

Case number

14287

Judges

Hack, B R Hilliard, Q S Joseph

The court found that the wording of the double taxation agreements between South Africa and the Netherlands, Sweden, and Kuwait is clear and unambiguous. The MFN clause in the Netherlands DTA is triggered when South Africa affords more favourable treatment to another contracting state, regardless of whether such treatment arises from agreements concluded before or after the Netherlands DTA. The subsequent agreement with Sweden incorporated a provision that residents of Sweden would receive the same preferential treatment as any other contracting state, irrespective of timing. Since Kuwait alr…

Source excerpt

• Double Taxation Agreements
• Most Favoured Nation Clause
• Income Tax Act
• Treaty Interpretation
• Dividends Tax
• Parol Evidence Rule

Crookes Brothers Limited v Commissioner of the South African Revenue Services (14179/2017)

Crookes Brothers Limited v Commissioner of the South African Revenue Services (14179/2017) [2018] ZAGPPHC 311; 80 SATC 439 (8 May 2018)

Court

North Gauteng High Court, Pretoria

Case number

14179/2017

Judge

Louw

High Court review of SARS’s refusal to reduce tax assessments failed because the loan terms allowed earlier repayment, so section 31(7) did not apply.

• Tax Administration Act Section 93
• Income Tax Act Section 31
• Reduced Assessment
• Subordination Agreement
• Debt Vs Equity
• Dividends Tax