South Africa Case Law

Christoffel Hendrik Wiese and Others v CSARS (1307/2022)

Christoffel Hendrik Wiese and Others v CSARS (1307/2022) [2024] ZASCA 111; [2024] 4 All SA 108 (SCA); 2025 (1) SA 127 (SCA); 87 SATC 14 (12 July 2024)

Court

Supreme Court of Appeal

Case number

1307/2022

Judges

Mocumie, Mothle, Goosen, Tolmay, Seegobin

The Supreme Court of Appeal held that the term 'tax debt' in section 183 of the Tax Administration Act refers to the taxpayer's liability to pay tax, which arises by operation of law upon the occurrence of a taxable event, regardless of whether an assessment has been issued. The Court found that requiring an assessed debt at the time of asset dissipation would defeat the purpose of section 183 and allow third parties to evade liability. The Court further held that the transcript of evidence given at an inquiry under section 50 of the Act is admissible in subsequent proceedings, as section 56(…

Source excerpt

• Tax Administration Act Section 183
• Third Party Liability For Tax Debt
• Admissibility Of Inquiry Transcript
• Assessment And Tax Debt
• Secondary Tax On Companies
• Capital Gains Tax

U Taxpayer v Commissioner For The South African Revenue Service (IT 24502)

U Taxpayer v Commissioner For The South African Revenue Service (IT 24502) [2023] ZATC 7 (2 June 2023)

Court

Tax Court

Case number

IT 24502

Judge

J I Cloete

The Tax Court dismissed an interlocutory application seeking advance determination of tax issues and a compensating-adjustments challenge, with costs.

• General Anti Avoidance Rules
• Secondary Tax On Companies
• Compensating Adjustments
• Pleading And Striking Out
• Locus Standi
• Tax-law

XYZ CC v Commissioner for the South African Revenue Service (14184)

XYZ CC v Commissioner for the South African Revenue Service (14184) [2020] ZATC 13 (9 December 2020)

Court

Tax Court

Case number

14184

Judge

Van Zÿl

Tax Court appeal on understatement penalties and interest. STC understatement penalties were set aside, the 2010 income tax penalty was reduced, and section 89quat interest was upheld.

• Understatement Penalty
• Compromise Agreement
• Secondary Tax On Companies
• Section 89quat Interest
• Burden Of Proof
• Gross Negligence

Commissioner for the South African Revenue Service v Char-Trade 117 CC t/a Ace Parking (776/2017)

Commissioner for the South African Revenue Service v Char-Trade 117 CC t/a Ace Parking (776/2017) [2018] ZASCA 89; 81 SATC 18 (31 May 2018)

Court

Supreme Court of Appeal

Case number

776/2017

Judges

Navsa, Lewis, Mbha, Davis, Schippers

The Supreme Court of Appeal held that STC prescription had not begun because Char-Trade never filed the required return for the 2007 dividend cycle.

• Prescription Of Tax Assessment
• Secondary Tax On Companies
• Self Assessment
• Connected Person Definition
• Tax-assessment-prescription
• Secondary-tax-on-companies

AB CC v Commission for the South African Revenue Service (13492)

AB CC v Commission for the South African Revenue Service (13492) [2017] ZATC 9 (1 March 2017)

Court

Tax Court

Case number

13492

Judge

Jansen

The Tax Court held that AB CC’s 2007 STC assessment had prescribed and set it aside, rejecting the Commissioner’s late attempt to plead fraud or non-disclosure.

• Secondary Tax On Companies
• Prescription Of Tax Assessment
• Self Assessment
• Non Disclosure
• Income Tax Act
• Tax Administration Act

XYZ CC v Commissioner for the South African Revenue Service (13285)

XYZ CC v Commissioner for the South African Revenue Service (13285) [2015] ZATC 4 (10 September 2015)

Court

Tax Court

Case number

13285

Judge

M P Tsoka

The court found that the loans advanced by XYZ CC to JK Property CC and LM CC were, in substance, disguised dividend distributions to Mr. B, the sole member of all three close corporations. The court held that close corporations cannot form part of a group of companies for purposes of the Income Tax Act, and thus the exemption provisions relied upon by XYZ CC were inapplicable. The facts indicated that the loans were interest-free, not repaid within the stipulated period, and lacked genuine repayment agreements, amounting to an anti-avoidance scheme. The court distinguished the ABC (Pty) Ltd…

Source excerpt

• Secondary Tax On Companies
• Deemed Dividends
• Connected Persons
• Interest Free Loans
• Anti Avoidance
• Onus Of Proof

ABC (Pty) Ltd v Commissioner for the South African Revenue Service (13512)

ABC (Pty) Ltd v Commissioner for the South African Revenue Service (13512) [2015] ZATC 5 (30 March 2015)

Court

Tax Court

Case number

13512

Judges

FHD van Oosten, S Makda, GC Koffman

The Tax Court held that interest-free intra-group loans were not deemed dividends subject to STC, applied the section 64C(4)(bA) exemption, and set aside the assessments.

• Secondary Tax On Companies
• Deemed Dividends
• Income Tax Act Interpretation
• Exemption Provisions
• Interest On Tax
• Connected Persons

Defy Ltd v Commissioner for the South African Revenue Services (192/09)

Defy Ltd v Commissioner for the South African Revenue Services (192/09) [2010] ZASCA 11; 2010 (5) SA 416 (SCA); [2010] 3 All SA 275 (SCA); 72 SATC 99 (12 March 2010)

Court

Supreme Court of Appeal

Case number

192/09

Judges

NAVSA, NUGENT, HEHER, BOSIELO, LEACH

The Supreme Court of Appeal held that Defy’s receipt from its subsidiary was not a capital profit for STC purposes and dismissed the appeal with costs.

• Secondary Tax On Companies
• Capital Profit Exemption
• Income Tax Act
• Liquidation Dividends
• Statutory Interpretation
• Secondary-tax-on-companies

Volkswagen of South Africa (Pty) Ltd v Commissioner South African Revenue Service (24201/2007)

Volkswagen of South Africa (Pty) Ltd v Commissioner South African Revenue Service (24201/2007) [2008] ZAGPHC 112; 70 SATC 195 (25 April 2008)

Court

High Courts - Gauteng

Case number

24201/2007

Judge

W L Seriti

The High Court held that South Africa’s secondary tax on companies was not a tax on dividends under the South Africa-Germany DTA, so the refund claim failed.

• Secondary Tax On Companies
• Double Taxation Agreement
• Refund Of Overpaid Tax
• Unjustified Enrichment
• Interpretation Of Tax Statutes
• Secondary-tax-on-companies

Commissioner for the South African Revenue Service v Airworld CC and Another (672/06)

Commissioner for the South African Revenue Service v Airworld CC and Another (672/06) [2007] ZASCA 147; [2008] 2 All SA 593 (SCA); 2008 (3) SA 335 (SCA); 70 SATC 48 (26 November 2007)

Court

Supreme Court of Appeal

Case number

672/06

Judges

Howie, Farlam, Lewis, Combrinck, Hurt

SCA case on whether discretionary trust beneficiaries were “recipients” for Secondary Tax on Companies purposes under the pre-2000 Income Tax Act.

• Secondary Tax On Companies
• Income Tax Act Interpretation
• Trusts And Beneficiaries
• Anti Tax Avoidance
• Connected Person Definition
• Secondary-tax-on-companies