South Africa Case Law

ABC (Pty) Ltd v Commissioner For The South African Revenue Service (13251, VAT 1077)

ABC (Pty) Ltd v Commissioner For The South African Revenue Service (13251, VAT 1077) [2018] ZATC 13 (16 May 2018)

Court

Tax Court

Case number

13251, VAT 1077

Judges

Satchwell, Makume, Mali, Natasha Singh, Bongani Mathibela

The court found that SARS's concession of part of the quantum claimed was validly made before the hearing and that the taxpayer was not prejudiced or taken by surprise. SARS's methodology for estimating under-declared sales and gross profit margin, based on the REACT POS data and expert analysis, was found to be reasonable in the circumstances, especially given the taxpayer's failure to provide complete accounting records. The court rejected the taxpayer's challenges to the provenance and reliability of the data, noting that the taxpayer retained the originals and failed to demonstrate any di…

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• Income Tax Assessment
• Vat Liability
• Tax Penalties
• Burden Of Proof
• Administrative Review
• Tax Evasion

BMW South Africa (Pty) Ltd v Commissioner of the South African Revenue Service (35006/2016)

BMW South Africa (Pty) Ltd v Commissioner of the South African Revenue Service (35006/2016) [2016] ZAGPPHC 913 (21 October 2016)

Court

North Gauteng High Court, Pretoria

Case number

35006/2016

Judge

C J van der Westhuizen

The applicant proved payment of the value-added tax for the period in question. The respondent's failure to properly allocate the payment led to the wrongful levying of penalties and interest. Despite proof of payment, the respondent compelled payment of penalties and interest, which the applicant paid under protest. The respondent conceded the main relief but opposed interest on the repaid amount. The court found that, in terms of Shuttleworth v South African Reserve Bank and the Tax Administration Act, the applicant is entitled to repayment of the penalties and interest, together with mora…

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• Value Added Tax
• Tax Penalties
• Interest On Tax Payments
• Tax Administration Act
• Costs Award

ABC (Pty) Ltd v Commissioner for the South African Revenue Services (VAT 1237)

ABC (Pty) Ltd v Commissioner for the South African Revenue Services (VAT 1237) [2016] ZATC 1; 78 SATC 272 (24 March 2016)

Court

Tax Court

Case number

VAT 1237

Judge

Lopes

The Tax Court held that the amended section 39(7) VAT remission provisions applied to interest imposed from 1 April 2010, so the taxpayer’s appeal failed.

• Value Added Tax
• Remission Of Interest
• Statutory Interpretation
• Tax Penalties
• Value-added-tax
• Remission-of-interest

X v Commissioner for the South African Revenue Service (13380)

X v Commissioner for the South African Revenue Service (13380) [2016] ZATC 3; 78 SATC 165 (27 January 2016)

Court

Tax Court

Case number

13380

Judges

C Pretorius, Z Mabhoza, D Fisher

The Tax Court reduced an understatement penalty from 50% to 35%, finding SARS bore the burden of proof and that no loss to the fiscus was a mitigating factor.

• Income Tax Act
• Tax Penalties
• Burden Of Proof
• Transitional Provisions
• Trust Income
• Tax-penalties

ABC (Pty) Limited v Commissioner for the South African Revenue Service (13410)

ABC (Pty) Limited v Commissioner for the South African Revenue Service (13410) [2014] ZATC 9 (4 August 2014)

Court

Tax Court

Case number

13410

Judges

Victor, M Pabhoo, S Lumka

The court held that mineral ore extracted from the ground does not constitute trading stock for purposes of section 23F(2) of the Income Tax Act, as it is not acquired for manufacture, sale, or exchange and is not intended to be sold in its raw state. Only once the ore is processed into concentrate does it become trading stock and meet the definition of acquisition. Therefore, the respondent may only recoup deductions related to the concentrate phase and not the initial extraction phase. Furthermore, administration, audit, and drying charges are incurred after production and do not relate to…

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• Income Tax Act Section 23f
• Deductibility Of Expenditure
• Definition Of Trading Stock
• Mining Vs Manufacturing
• Tax Penalties
• Costs Award