South Africa Case Law

Trustees for the Daleen Kruger Trust v Middleground Trading 251 CC and Another (A449/2017)

Trustees for the Daleen Kruger Trust v Middleground Trading 251 CC and Another (A449/2017) [2018] ZAGPPHC 596 (2 August 2018)

Court

North Gauteng High Court, Pretoria

Case number

A449/2017

Judges

Moultrie, Janse Van Nieuwenhuizen

The court held that the minimum monthly payment under the contract, although described as 'rent', was in substance a prepayment for peat to be extracted, subject to monthly set-off and reconciliation. The contract did not entitle the Trust to retain the payment irrespective of extraction. The compliance notice issued by the Department of Environmental Affairs rendered peat extraction impossible, and this impossibility was not due to Middleground's fault but to regulatory prohibition. A tacit term excusing payment in such circumstances was necessary for business efficacy and did not conflict w…

Source excerpt

• Contractual Interpretation
• Mineral Lease
• Supervening Impossibility
• Tacit Terms
• Environmental Compliance Notice
• Set Off And Reconciliation

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