South Africa Case Law

eThekwini Municipality v Atlas Plastics (Pty) Ltd (8758/06)

eThekwini Municipality v Atlas Plastics (Pty) Ltd (8758/06) [2012] ZAKZDHC 11 (8 March 2012)

Court

Kwazulu-Natal High Court, Durban

Case number

8758/06

Judge

Van Zyl

The court found that the plaintiff had established, on a preponderance of probabilities, that the defendant was registered as a levy payer and liable to render returns and pay levies for the period in question. The defendant's admissions regarding rendering returns and making payments from June 2003, as well as the absence of any evidence to the contrary, supported the plaintiff's case. The assessment issued on 8 February 2002 was deemed correct and enforceable under paragraph 12(4) of the Payment Regulations, and the defendant was precluded from challenging its correctness in these proceedin…

Source excerpt

• Regional Services Levy
• Regional Establishment Levy
• Registration Of Levy Payer
• Assessment And Enforcement
• Interest On Arrears

Thabo Mofutsanyana District Municipality v Steyn-Enslin & Vennote and Others (639/2010)

Thabo Mofutsanyana District Municipality v Steyn-Enslin & Vennote and Others (639/2010) [2011] ZASCA 168; 2012 (3) SA 179 (SCA); 74 SATC 366 (29 September 2011)

Court

Supreme Court of Appeal

Case number

639/2010

Judges

Mthiyane, Heher, Maya, Bosielo, Majiedt

The Supreme Court of Appeal held that the appellant, as a municipal council, is not entitled under the relevant statutory framework to demand a statement of account, debatement, or substantiating documents from levy payers in default. Regulation 13(1) expressly prohibits the council from requiring such documents or substantiation. The power to assess levies and require supporting documentation resides with the Commissioner of the South African Revenue Service. The appellant's claim, as pleaded, did not disclose a valid cause of action. The court further found no basis to develop the common la…

Source excerpt

• Regional Services Levy
• Exception To Particulars Of Claim
• Powers Of Municipal Council
• Development Of Common Law
• Mandamus
• Statutory Interpretation

City of Tshwane Metropolitan Municipality v Cable City (Pty) Ltd (CCT 85/09)

City of Tshwane Metropolitan Municipality v Cable City (Pty) Ltd (CCT 85/09) [2009] ZACC 34; 2010 (5) BCLR 445 (CC) (3 December 2009)

Court

Constitutional Court

Case number

CCT 85/09

Judges

Ngcobo, Moseneke, Cameron, Froneman, Khampepe, Mogoeng, Nkabinde, Skweyiya, Van der Westhuizen

The Constitutional Court held that section 12 of the Regional Services Councils Act did not empower the Minister of Finance to authorise municipalities to estimate regional service levies. Calculation, as required by the statute, is precise and does not encompass estimation. The Minister's broader powers to make provisions necessary for councils to impose and claim levies do not extend to authorising enforcement of estimated levies. The absence of the Minister as a party did not render the proceedings incompetent, as the respondent was entitled to raise the invalidity of the Notice as a defen…

Source excerpt

• Regional Services Levy
• Ministerial Powers
• Ultra Vires
• Collateral Challenge

City of Tshwane Metropolitan Municipality v Cable City (Pty) Ltd (232/08)

City of Tshwane Metropolitan Municipality v Cable City (Pty) Ltd (232/08) [2009] ZASCA 87; [2010] 1 All SA 1 (SCA); 2010 (3) SA 589 (SCA); 72 SATC 285 (10 September 2009)

Court

Supreme Court of Appeal

Case number

232/08

Judges

Brand, Cloete, Jafta, Maya, Hurt

The Supreme Court of Appeal held that paragraph 11(1) of Government Notice R340, which authorized councils to estimate levies, was ultra vires the empowering provisions of section 12 of the Regional Services Councils Act 109 of 1985. The Act requires levies to be calculated mathematically, and only the Commissioner for Inland Revenue is empowered to estimate or determine levy liability and instruct councils to assess levies. The Minister did not have authority to permit councils to estimate levies without objective data. The respondent was entitled to raise a collateral challenge to the valid…

Source excerpt

• Ultra Vires Regulation
• Regional Services Levy
• Ministerial Powers
• Collateral Challenge
• Constitutional Validity
• Levy Assessment

City of Tshwane Metropolitan Municipality v Cable (Pty) Ltd (34431/2005)

City of Tshwane Metropolitan Municipality v Cable (Pty) Ltd (34431/2005) [2008] ZAGPHC 11 (18 January 2008)

Court

High Courts - Gauteng

Case number

34431/2005

Judge

HJ Fabricius

The court held that the plaintiff, a municipal council, was not lawfully empowered to estimate and assess the defendant's liability for regional services and establishment levies in the absence of returns, as paragraph 11(1) of Government Notice R340 was ultra vires the empowering statute. The relevant legislation only authorised the Commissioner for Inland Revenue to estimate levy liability, not the council. The plaintiff's assessment was arbitrary, based on factors unrelated to the defendant's enterprise, and the refusal to provide reasons further undermined its validity. The approach adopt…

Source excerpt

• Regional Services Levy
• Ultra Vires
• Arbitrary Assessment
• Constitutional Validity

Dotcom Debtpack Joint Venture v Capricorn District Municipality (18080/2004)

Dotcom Debtpack Joint Venture v Capricorn District Municipality (18080/2004) [2007] ZAGPHC 22 (5 April 2007)

Court

High Courts - Gauteng

Case number

18080/2004

Judge

HJ De Vos

The court held that the plaintiff failed to prove entitlement to commission under a debt-collection contract and dismissed the claim with costs.

• Contractual Interpretation
• Commission Entitlement
• Onus Of Proof
• Jurisdiction Of Municipalities
• Credit Adjustments
• Regional Services Levy