South Africa Case Law

X and Another v Commissioner for the South African Revenue Service (52/2023)

X and Another v Commissioner for the South African Revenue Service (52/2023) [2024] ZATC 12 (2 December 2024)

Court

Tax Court

Case number

52/2023

Judge

S G Magardie

The court held that the applicants' Second Objection failed to comply with the mandatory requirements of rule 7(2)(b) of the Tax Administration Act rules. The objections were vague, lacked specificity, and did not address each assessed amount or provide the documents required to substantiate the grounds of objection. The applicants failed to provide SARS with access to the Healthbridge system and did not submit supporting documentation for their objections regarding donations tax, VAT, and unexplained deposits. The court found that SARS was justified in invalidating the objection under rule 7…

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• Tax Administration Act
• Validity Of Objection
• Burden Of Proof
• Donations Tax
• Vat Assessment
• Procedural Compliance

JMN v The Commissioner for the South African Revenue Service (A3096/2019; 14001)

JMN v The Commissioner for the South African Revenue Service (A3096/2019; 14001) [2021] ZAGPJHC 167 (30 April 2021)

Court

South Gauteng High Court, Johannesburg

Case number

A3096/2019; 14001

Judges

EF Dippenaar, M Senyatsi, B Wanless

High Court tax appeal about valuing unlisted shares for CGT and donations tax, the classification of mineral resources, and a disputed consultancy liability.

• Capital Gains Tax
• Donations Tax
• Valuation Of Unlisted Shares
• Tax Assessment
• Contingent Liability
• Costs Order

Malema v Commissioner for the South African Revenue Service (76306/2015)

Malema v Commissioner for the South African Revenue Service (76306/2015) [2016] ZAGPPHC 263; 78 SATC 279 (29 April 2016)

Court

North Gauteng High Court, Pretoria

Case number

76306/2015

Judge

Jansen

The High Court referred to trial a dispute over whether SARS remained bound by a tax compromise agreement with Julius Malema.

• Compromise Agreement
• Tax Administration Act
• Material Non Disclosure
• Sequestration
• Donations Tax
• Motion Proceedings

Abraham Krok Trust v Commissioner for South African Revenue Service (58/2010)

Abraham Krok Trust v Commissioner for South African Revenue Service (58/2010) [2010] ZASCA 153; [2011] 2 All SA 591 (SCA); 73 SATC 105 (29 November 2010)

Court

Supreme Court of Appeal

Case number

58/2010

Judges

NAVSA, NUGENT, MAYA, CACHALIA, BERTELSMANN

The SCA held that trust deed clause 12.1 authorised capital disposals for beneficiaries’ benefit, so the awards fell within the trust exemption from donations tax.

• Donations Tax
• Trust Deed Construction
• Exemption From Tax
• Burden Of Proof
• Donations-tax
• Trust-deed-construction

Le Roux and Another v Ontvanger van Inkomste and Another (6800/08)

Le Roux and Another v Ontvanger van Inkomste and Another (6800/08) [2009] ZAFSHC 27 (12 March 2009)

Court

Free State High Court, Bloemfontein

Case number

6800/08

Judge

C.B. Cillié

The court found that the applicant was not made aware of the material tax consequences of his election under the joint will, specifically the donations tax liability. The applicant's ignorance was excusable, as neither he nor his advisor Smith knew of the implications, and the Master required a certificate of understanding that could not be provided. The court held that fairness and equity demand that the applicant be permitted to revoke his election, as he acted without full knowledge of the legal and financial consequences. The respondent's argument that the applicant is bound by his adviso…

Source excerpt

• Irrevocability Of Election
• Excusable Ignorance
• Joint Wills
• Donations Tax
• Administration Of Estates

Commissioner for South African Revenue Service v Marx NO (A720/05)

Commissioner for South African Revenue Service v Marx NO (A720/05) [2006] ZAWCHC 9; 2006 (4) SA 195 (C); 68 SATC 219 (9 March 2006)

Court

Western Cape High Court, Cape Town

Case number

A720/05

Judges

Van Zyl, Davis, Yekiso

The High Court held that deferred donations to children were executory donations exempt from donations tax because no benefit accrued until the donor’s death.

• Donations Tax
• Executory Donation
• Income Tax Act
• Onus Of Proof
• Bare Dominium
• Constitutum Possessorium

Welch v Commissioner for the South African Revenue Service (23/2003)

Welch v Commissioner for the South African Revenue Service (23/2003) [2004] ZASCA 40; [2004] 2 All SA 586 (SCA); 2005 (4) SA 173 (SCA); 66 SATC 303 (21 May 2004)

Court

Supreme Court of Appeal

Case number

23/2003

Judges

Marais, Zulman, Nugent, Conradie, Cloete

The Supreme Court of Appeal held that the transfer of assets to the trust was not a gratuitous disposal attracting donations tax. The primary and dominant purpose of the transaction was to enable the trustees to discharge the appellant's legal obligations for maintenance under a divorce order and consent paper. The appellant received adequate consideration in the form of the discharge of these obligations, and the transaction was not motivated by pure liberality or disinterested benevolence. The statutory definition of 'donation' in the Income Tax Act does not exclude the need to consider mot…

Source excerpt

• Donations Tax
• Gratuitous Disposal
• Trusts
• Maintenance Obligations
• Adequate Consideration