South Africa Case Law

New Adventure Shelf 122 (Pty) Ltd v Commissioner of the South African Revenue Services (310/2016)

New Adventure Shelf 122 (Pty) Ltd v Commissioner of the South African Revenue Services (310/2016) [2017] ZASCA 29; [2017] 2 All SA 784 (SCA); 2017 (5) SA 94 (SCA); 79 SATC 233 (28 March 2017)

Court

Supreme Court of Appeal

Case number

310/2016

Judges

Shongwe, Leach, Wallis, Mocumie, Nicholls

The SCA held that a later cancellation of a sale did not justify reopening a final 2007 capital gains tax assessment; any loss arose in the cancellation year.

• Capital Gains Tax
• Tax Assessment Finality
• Cancellation Of Sale
• Capital Loss
• Eighth Schedule Interpretation
• Capital-gains-tax

Commissioner for the South African Revenue Service v Brummeria Renaissance (Pty) Ltd and Others (391/06)

Commissioner for the South African Revenue Service v Brummeria Renaissance (Pty) Ltd and Others (391/06) [2007] ZASCA 99; [2007] 4 All SA 1338 (SCA); 2007 (6) SA 601 (SCA); 69 SATC 205 (13 September 2007)

Court

Supreme Court of Appeal

Case number

391/06

Judges

Scott, Cloete, Van Heerden, Kgomo, Mhlantla

The Supreme Court of Appeal held that the right to use interest-free loans constitutes gross income accruing to the taxpayer, as it is a valuable right capable of being valued in money. The court rejected the argument that such a benefit must be convertible into money by the taxpayer to be taxable, emphasizing that the test is objective and based on whether the right has a money value. The court further found that the Commissioner was precluded by section 79(1) read with section 81(5) of the Income Tax Act from raising further revised assessments against Brummeria for the tax years 1996 to 19…

Source excerpt

• Income Tax Act
• Gross Income Definition
• Interest Free Loans
• Tax Assessment Finality
• Housing Development Schemes