BMW South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (A553/16)
BMW South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (A553/16) [2018] ZAGPJHC 720; 81 SATC 157 (28 June 2018)
The court held that the professional fees paid by BMW South Africa to tax consultancy firms for expatriate employees constituted a taxable benefit under paragraph (i) of section 1 of the Income Tax Act read with paragraph 2(e) of the Seventh Schedule. The expatriate employees received a benefit in the form of free tax consultancy services, which had monetary value and was not available to local employees. The services were rendered wholly for the private use of the expatriate employees and not partially for the business of BMW. The court found that the appellant's reliance on the tax equalisa…
Source excerpt
- Income Tax Act
- Seventh Schedule Interpretation
- Taxable Benefits
- Expatriate Employees
- Tax Equalisation
- Fringe Benefits