TCT Leisure (Pty) Ltd v Commissioner for the South African Revenue Services (59/09)
TCT Leisure (Pty) Ltd v Commissioner for the South African Revenue Services (59/09) [2010] ZASCA 10; [2010] 3 All SA 325 (SCA); 72 SATC 187 (12 March 2010)
The court held that the occupation rights supplied to members of the public were not an incident of share ownership but were discrete rights (points rights) separate from the shares in Leisure Holiday Club Ltd. The articles of association and sale agreements did not link the occupation rights to the shares, and certificates issued to members distinguished between share ownership and points rights. The commercial practice of selling shares and points together did not merge the rights. Therefore, the supply did not qualify as an exempt supply of equity securities under section 12(a) of the VAT…
Source excerpt
- Value Added Tax
- Exemptions Under Vat Act
- Financial Services Definition
- Equity Security Exemption