South Africa Case Law

Capstone 556 (Pty) Limited v Commissioner For The South African Revenue Service (A49/14)

Capstone 556 (Pty) Limited v Commissioner For The South African Revenue Service (A49/14) [2014] ZAWCHC 123; 2014 (6) SA 195 (WCC); 77 SATC 1 (26 August 2014)

Court

Western Cape High Court, Cape Town

Case number

A49/14

Judges

Griesel, Yekiso, Baartman

The court found that the JDG shares were acquired and held by the appellant as a capital asset, not as trading stock in pursuit of a profit-making scheme. The evidence demonstrated that the acquisition was part of a strategic rescue operation in the furniture industry, with a long-term commitment and substantial risk, and no short-term intention to sell. The subsequent decision to sell was opportunistic, prompted by external factors and did not constitute a change of intention to convert the asset into trading stock. Accordingly, the proceeds from the disposal of the shares were of a capital…

Source excerpt

• Income Tax Assessment
• Capital Vs Revenue Distinction
• Deductibility Of Expenditure
• Capital Gains Tax
• Borrowing Costs
• Intention Of Taxpayer

Wyner v Commissioner for The SA Revenue Service (291/01)

Wyner v Commissioner for The SA Revenue Service (291/01) [2002] ZAWCHC 12; 2002 (4) SA 744 (C); 64 SATC 254 (8 March 2002)

Court

Western Cape High Court, Cape Town

Case number

291/01

Judges

JH Conradie, HC Nel, AP Blignault

The court held that proceeds from the sale of Clifton property were capital, not gross income, because the appellant was salvaging her investment rather than pursuing profit.

• Capital Vs Revenue Receipt
• Income Tax Assessment
• Sale Of Immovable Property
• Intention Of Taxpayer
• Capital-vs-revenue-receipt
• Income-tax