South Africa Case Law

Commissioner for the South African Revenue Service v Brummeria Renaissance (Pty) Ltd and Others (391/06)

Commissioner for the South African Revenue Service v Brummeria Renaissance (Pty) Ltd and Others (391/06) [2007] ZASCA 99; [2007] 4 All SA 1338 (SCA); 2007 (6) SA 601 (SCA); 69 SATC 205 (13 September 2007)

Court

Supreme Court of Appeal

Case number

391/06

Judges

Scott, Cloete, Van Heerden, Kgomo, Mhlantla

The Supreme Court of Appeal held that the right to use interest-free loans constitutes gross income accruing to the taxpayer, as it is a valuable right capable of being valued in money. The court rejected the argument that such a benefit must be convertible into money by the taxpayer to be taxable, emphasizing that the test is objective and based on whether the right has a money value. The court further found that the Commissioner was precluded by section 79(1) read with section 81(5) of the Income Tax Act from raising further revised assessments against Brummeria for the tax years 1996 to 19…

Source excerpt

• Income Tax Act
• Gross Income Definition
• Interest Free Loans
• Tax Assessment Finality
• Housing Development Schemes

Boland Bank Bpk. v Engelbrecht en Andere (281/95)

Boland Bank Bpk. v Engelbrecht en Andere (281/95) [1996] ZASCA 42; 1996 (3) SA 537 (SCA); [1996] 2 All SA 273 (A); (29 March 1996)

Court

Supreme Court of Appeal

Case number

281/95

Judges

Botha, Nestadt, Nienaber, Marais, Plewman

The Supreme Court of Appeal held that occupiers in the Nimmersat scheme did not gain priority over Boland Bank’s earlier mortgage bonds under section 4A.

• Housing Development Schemes
• Right Of Occupation
• Statutory Priority
• Mortgage Bonds
• Retrospective Application
• Trust Law