South Africa Case Law

Commissioner for the South African Revenue Service v KWJ Investments Service (Pty) Ltd (466/2017)

Commissioner for the South African Revenue Service v KWJ Investments Service (Pty) Ltd (466/2017) [2018] ZASCA 81; 81 SATC 1 (31 May 2018)

Court

Supreme Court of Appeal

Case number

466/2017

Judges

Navsa, Wallis, Mbha, Davis, Makgoka

The Supreme Court of Appeal held that the cession of dividend rights to the respondent constituted incorporeal property with a monetary value, which could be classified as gross income under s 1 of the Income Tax Act. The rights were acquired unconditionally and could be valued and disposed of in the market. However, the respondent provided sufficient evidence that, at the time of the original assessments, the Commissioner had a practice generally prevailing of not taxing such cessions of dividend rights as separate accruals. This was supported by departmental rulings and consistent treatment…

Source excerpt

• Gross Income Definition
• Cession Of Dividend Rights
• Practice Generally Prevailing
• Income Tax Act Section 1
• Income Tax Act Section 24j
• Tax Assessment Prescription

Relier (Pty) Ltd. v Commissioner for Inland Revenue (256/96)

Relier (Pty) Ltd. v Commissioner for Inland Revenue (256/96) [1997] ZASCA 105; ; [1998] 1 All SA 183 (A); (25 November 1997)

Court

Supreme Court of Appeal

Case number

256/96

Judges

Harms, Mahomed, Van Heerden, Vivier, Zulman

The Supreme Court of Appeal held that a tax-driven leasing and subleasing arrangement was simulated, and that building costs were includible in Relier’s gross income.

• Gross Income Definition
• Simulated Transactions
• Tax Avoidance
• Income Tax Act Section 1
• Enforceable Rights
• Substance Over Form