Robin Consolidated Industries Ltd. v Commissioner for Inland Revenue (496/95)
Robin Consolidated Industries Ltd. v Commissioner for Inland Revenue (496/95) [1997] ZASCA 12; (1997 (3) SA 654 (SCA); [1997] 2 All SA 195 (A); (14 March 1997)
The Supreme Court of Appeal held that Robin Consolidated Industries Limited did not carry on trade during the 1988 tax year. The two sales of goods in bond were found to be mere realisations of assets in the course of liquidation, not trading activities. The court affirmed the established interpretation of section 20(1) of the Income Tax Act, namely that assessed losses can only be carried forward if there is income from trade in the relevant year and if a new balance of assessed loss is struck each year. The court found no basis to depart from the rule in SA Bazaars v CIR, noting that the la…
Source excerpt
- Assessed Loss Carry Forward
- Income Tax Act Interpretation
- Trade Definition
- Liquidation Realisation