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)
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