South Africa Case Law

BMW South Africa (Pty) Ltd v The Commissioner for the South African Revenue Service (1156/2018)

BMW South Africa (Pty) Ltd v The Commissioner for the South African Revenue Service (1156/2018) [2019] ZASCA 107; 2020 (1) SA 484 (SCA); 82 SATC 1 (6 September 2019)

Court

Supreme Court of Appeal

Case number

1156/2018

Judges

Navsa, Leach, Mbha, Van der Merwe, Nicholls

The Supreme Court of Appeal held that employer-paid tax consultancy fees for expatriate employees were taxable benefits under the Income Tax Act.

• Income Tax Act
• Fringe Benefits
• Tax Equalisation
• Seventh Schedule Interpretation
• Gross Income Definition
• Income-tax-act

BMW South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (A553/16)

BMW South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (A553/16) [2018] ZAGPJHC 720; 81 SATC 157 (28 June 2018)

Court

South Gauteng High Court, Johannesburg

Case number

A553/16

Judges

Carelse, Molopa-Sethosa, Bagwa

The court held that the professional fees paid by BMW South Africa to tax consultancy firms for expatriate employees constituted a taxable benefit under paragraph (i) of section 1 of the Income Tax Act read with paragraph 2(e) of the Seventh Schedule. The expatriate employees received a benefit in the form of free tax consultancy services, which had monetary value and was not available to local employees. The services were rendered wholly for the private use of the expatriate employees and not partially for the business of BMW. The court found that the appellant's reliance on the tax equalisa…

Source excerpt

• Income Tax Act
• Seventh Schedule Interpretation
• Taxable Benefits
• Expatriate Employees
• Tax Equalisation
• Fringe Benefits

BMW South Africa (PTY) LTD v The Commissioner for the South African Revenue Service (A553/16)

BMW South Africa (PTY) LTD v The Commissioner for the South African Revenue Service (A553/16) [2018] ZAGPPHC 780 (28 June 2018)

Court

North Gauteng High Court, Pretoria

Case number

A553/16

Judges

Carelse, Molopa-Sethosa, Bagwa

The court held that employer-paid tax consultancy fees for expatriate employees were taxable benefits and dismissed BMW South Africa’s appeal with costs.

• Income Tax Act
• Taxable Benefits
• Seventh Schedule Interpretation
• Tax Equalisation
• Fringe Benefits
• Income-tax-act

Vacation Exchanges International (Pty) Ltd v Commissioner for the South African Revenue Services (A253/2008)

Vacation Exchanges International (Pty) Ltd v Commissioner for the South African Revenue Services (A253/2008) [2009] ZAWCHC 139; 71 SATC 249 (7 August 2009)

Court

Western Cape High Court, Cape Town

Case number

A253/2008

Judges

Davis, Bozalek, Alllie

The court held that the Seventh Schedule’s valuation process for fringe benefits must be followed before employees’ tax can be assessed against the employer.

• Fringe Benefits Taxation
• Seventh Schedule Interpretation
• Employees Tax
• Remuneration Definition
• Fringe-benefits-taxation
• Employees-tax