Benhaus Mining (Proprietary) Limited v Commissioner of the South African Revenue Services (13863)
Benhaus Mining (Proprietary) Limited v Commissioner of the South African Revenue Services (13863) [2017] ZATC 4; 80 SATC 455 (30 November 2017)
The court held that the appellant did not derive income from mining operations as defined in the Income Tax Act, as it did not hold mining rights and was not exposed to the commercial risks inherent in mining. The appellant's activities constituted contract mining for a fee, which does not qualify for mining capital allowances under section 15(a) and section 36. The court found that the appellant failed to ring-fence income and expenditure per mine or contract, as required by section 36(7E) and (7F), and that its equipment replacement policy could not override the objective useful life for de…
Source excerpt
- Mining Capital Allowances
- Income Tax Act Section 15
- Contract Mining
- Recoupment Of Assets
- Understatement Penalties
- Section 89quat Interest