South Africa Case Law

MTN International (Mauritius) Ltd v Commissioner of South African Revenue Services (275/2013)

MTN International (Mauritius) Ltd v Commissioner of South African Revenue Services (275/2013) [2014] ZASCA 8; 2014 (5) SA 225 (SCA); 76 SATC 217 (14 March 2014)

Court

Supreme Court of Appeal

Case number

275/2013

Judges

Mpati, Lewis, Ponnan, Maya, Wallis

The Supreme Court of Appeal held that an incorrect due date on a SARS revised assessment did not invalidate it. The appeal was dismissed with costs.

• Income Tax Act 58 Of 1962
• Revised Assessment
• Prescription Of Tax Assessment
• Procedural Validity
• Interest Deduction
• Tax-law

Armgold/Harmony Freegold Joint Venture (Pty) Ltd v Commissioner for the South African Revenue Services (703/2011)

Armgold/Harmony Freegold Joint Venture (Pty) Ltd v Commissioner for the South African Revenue Services (703/2011) [2012] ZASCA 152; 2013 (1) SA 353 (SCA); [2013] 1 All SA 253 (SCA); 74 SATC 351 (1 October 2012)

Court

Supreme Court of Appeal

Case number

703/2011

Judges

Navsa, Cloete, Heher, Leach, Pillay

The Supreme Court of Appeal held that mining capital expenditure deductions are limited by the Act’s general and mine-specific caps, and dismissed the appeal.

• Mining Capital Expenditure
• Income Tax Act 58 Of 1962
• Deduction Of Assessed Losses
• Ring Fencing Of Mining Operations
• Taxable Income Calculation
• Income-tax

Eveready (Pty) Ltd v Commissioner for the South African Revenue Service (195/11)

Eveready (Pty) Ltd v Commissioner for the South African Revenue Service (195/11) [2012] ZASCA 36; 74 SATC 185 (29 March 2012)

Court

Supreme Court of Appeal

Case number

195/11

Judges

Nugent, Heher, Malan, Tshiqi, Boruchowitz

The SCA held that Eveready’s opening inventory was not acquired for no consideration under s 22(4), and dismissed the appeal and cross-appeal.

• Income Tax Act 58 Of 1962
• Trading Stock Valuation
• Acquisition For No Consideration
• Deductibility Of Opening Stock
• Interest On Unpaid Tax
• Income-tax-act-1962

Ackermans Ltd v Commissioner for South African Revenue Service, Pep Store (SA) Ltd v Commissioner for South African Revenue Service (441/09)

Ackermans Ltd v Commissioner for South African Revenue Service, Pep Store (SA) Ltd v Commissioner for South African Revenue Service (441/09) [2010] ZASCA 131; 2011 (1) SA 1 (SCA) ; [2011] 2 All SA 125 (SCA); 73 SATC 1 (1 October 2010)

Court

Supreme Court of Appeal

Case number

441/09

Judges

NAVSA, CLOETE, CACHALIA, MHLANTLA, BOSIELO

The Supreme Court of Appeal held that Ackermans did not incur deductible expenditure when a purchaser assumed contingent liabilities under a business sale.

• Income Tax Act 58 Of 1962
• Deductibility Of Expenditure
• Contingent Liabilities
• Sale Of Business
• Revenue Vs Capital Expenditure
• Income-tax-act-58-of-1962

Ernst Bester Trust v Commissioner of South African Revenue Services (282/07)

Ernst Bester Trust v Commissioner of South African Revenue Services (282/07) [2008] ZASCA 55; 2008 (5) SA 279 (SCA); 70 SATC 151 (26 May 2008)

Court

Supreme Court of Appeal

Case number

282/07

Judges

Harms, Navsa, Heher, Cachalia, Snyders

The Supreme Court of Appeal held that payments for sand removed from a farm were revenue, not capital, and refused an opening stock deduction.

• Income Tax Act 58 Of 1962
• Trading Stock Deduction
• Capital Vs Revenue
• Mineral Lease
• Taxable Income
• Capital-vs-revenue

Commissioner for Inland Revenue v Conhage (Pty) Ltd (formerly Tycon (Pty) Ltd) (606/97)

Commissioner for Inland Revenue v Conhage (Pty) Ltd (formerly Tycon (Pty) Ltd) (606/97) [1999] ZASCA 64 (17 September 1999)

Court

Supreme Court of Appeal

Case number

606/97

Judges

Mahomed, Hefer, Olivier, Farlam, Madlanga

The court held that Tycon’s sale-and-leaseback transactions were genuine and that section 103 of the Income Tax Act did not apply, so the appeal failed.

• Income Tax Act 58 Of 1962
• Tax Avoidance
• Sale And Leaseback
• Simulated Transactions
• Section 103
• Deductibility Of Rentals

Odendaal v Kommissaris van Binnelandse Inkomste (193/96)

Odendaal v Kommissaris van Binnelandse Inkomste (193/96) [1998] ZASCA 7; 1998 (3) SA 318 (SCA); [1998] 2 All SA 461 (A) (13 March 1998)

Court

Supreme Court of Appeal

Case number

193/96

Judges

Van Heerden, Hefer, Marais, Schutz, Melunsky

The court held that carried-forward development expenditure in loss years was not part of the tax assessment and could not be objected to until it affected a later year.

• Income Tax Act 58 Of 1962
• Assessment Finality
• Development Expenditure
• Objection And Appeal Procedure
• Carry Forward Of Losses
• Assessment-finality

Commissioner for Inland Revenue v Sunnyside Centre (Pty) Ltd. (86/95)

Commissioner for Inland Revenue v Sunnyside Centre (Pty) Ltd. (86/95) [1996] ZASCA 102; 1997 (1) SA 68 (SCA); (20 September 1996)

Court

Supreme Court of Appeal

Case number

86/95

Judges

Van Heerden, Kumleben, Howie, Schutz, Scott

The Supreme Court of Appeal held that the interest paid by Sunnyside Centre (Pty) Ltd to UBS in excess of interest received from SGH was not deductible under section 11(a) and section 23(g) of the Income Tax Act 58 of 1962. The Court found that the arrangement was primarily intended to benefit Agros (Pty) Ltd, another group company, by securing cheaper finance, and not to further Sunnyside's own trade or profitability. There was no evidence that Sunnyside intended to earn a profit from the transaction, nor that the expenditure was wholly and exclusively laid out for the purposes of its trade.…

Source excerpt

• Deductibility Of Interest
• Income Tax Act 58 Of 1962
• Dual Purpose Expenditure
• Commercial Expediency

Sentra-Oes Kooperatief Bpk v Kommissaris van Binnelandse Inkomste (312/93)

Sentra-Oes Kooperatief Bpk v Kommissaris van Binnelandse Inkomste (312/93) [1995] ZASCA 9; 1995 (3) SA 197 (AD); (9 March 1995)

Court

Supreme Court of Appeal

Case number

312/93

Judges

Corbett, Hoexter, Smalberger, Kumleben, Nicholas

The court held that a short-term insurer’s irrecoverable R5 million deposit loss was capital in nature and not deductible; condonation was refused and the appeal struck off.

• Income Tax Act 58 Of 1962
• Deductibility Of Losses
• Capital Vs Revenue Loss
• Short Term Insurance
• Investment Losses
• Tax-law

Conshu (Pty) Ltd v Commissioner for Inland Revenue (437/92)

Conshu (Pty) Ltd v Commissioner for Inland Revenue (437/92) [1994] ZASCA 104; 1994 (4) SA 603 (AD); [1994] 2 All SA 501 (A) (2 September 1994)

Court

Supreme Court of Appeal

Case number

437/92

Judges

Hoexter, E M Grosskopf, Nestadt, Harms, Olivier

The court held that section 103(2) of the Income Tax Act could be applied in 1986, even though it had not been applied in the year the avoidance agreement was made.

• Income Tax Act 58 Of 1962
• Assessed Loss Set Off
• Tax Avoidance
• Interpretation Of Statutes
• Income-tax
• Assessed-loss