Bosch and Another v Commissioner of South African Revenue Services (A 94/2012)
Bosch and Another v Commissioner of South African Revenue Services (A 94/2012) [2012] ZAWCHC 188; [2013] 2 All SA 41 (WCC); 2013 (5) SA 130 (WCC); 75 SATC 1 (20 November 2012)
The Court held that the scheme agreements created unconditional sales upon exercise of the option, and that section 8A was triggered at that point, not upon delivery of shares. The various clauses in the scheme, including those relating to continued employment and the stop loss provision, did not constitute suspensive conditions that would defer the creation of the right to acquire shares. The Court found that the scheme had clear commercial purpose and was not a simulated transaction. Accordingly, paragraph 2(a) of the Seventh Schedule was excluded by the proviso, and section 8C did not appl…
Source excerpt
- Income Tax Act
- Employee Share Incentive Scheme
- Section 8a
- Section 8c
- Seventh Schedule
- Simulated Transactions