Commissioner for Inland Revenue v Insolvent Estate JP Botha t/a Trio Culture (30/89)
Commissioner for Inland Revenue v Insolvent Estate JP Botha t/a Trio Culture (30/89) [1990] ZASCA 2; 1990 (2) SA 548 (AD); [1990] 2 All SA 163 (A) (26 February 1990)
The majority held that the statutory definition of 'sale' in the Sales Tax Act is sufficiently broad to include agreements of sale, whether legal or illegal. The Act does not expressly exclude void or illegal agreements from attracting sales tax. The court found that the milk-culture scheme operated by Trio Kulture, even if assumed to be a lottery and thus void under the Gambling Act, still constituted 'sales' within the meaning of the Sales Tax Act. The respondent failed to discharge the onus of proving that the assessed amount was not liable to sales tax. Therefore, the assessment by the Co…
Source excerpt
- Sales Tax Assessment
- Void Contracts
- Lottery Scheme
- Statutory Interpretation
- Illegal Agreements