South Africa Case Law

Commissioner for South African Revenue Services v South African Custodial Services (Pty) Ltd (131/2011)

Commissioner for South African Revenue Services v South African Custodial Services (Pty) Ltd (131/2011) [2011] ZASCA 233; 2012 (1) SA 522 (SCA); [2012] 2 All SA 237 (SCA); 74 SATC 61; (30 November 2011)

Court

Supreme Court of Appeal

Case number

131/2011

Judges

Brand, Maya, Cachalia, Mhlantla, Plasket

The Supreme Court of Appeal held that the letter of 4 May 2007 constituted a revised assessment, and therefore the assessment for the 2002 year of assessment had not become final under section 79A(2) of the Income Tax Act. The respondent, South African Custodial Services (Pty) Ltd, was not entitled to deduct the cost of constructing and equipping the prison under section 22(2A) and section 11(a), as it did not itself effect improvements or deliver materials to the State's property; these expenses were incurred by the sub-contractor, CGM, which acted as an independent contractor and not as an…

Source excerpt

• Income Tax Act
• Deductibility Of Expenditure
• Finality Of Tax Assessment
• Trading Stock
• Interest And Finance Charges

Estate Late AG Bourke v Commissioner for Inland Revenue (249/89)

Estate Late AG Bourke v Commissioner for Inland Revenue (249/89) [1990] ZASCA 166; [1991] 4 All SA 94 (AD) (30 November 1990)

Court

Supreme Court of Appeal

Case number

249/89

Judges

Hoexter, Botha, Nestadt, Goldstone, Preiss

The court held that compensation for fire-destroyed pine trees was taxable income because the trees were trading stock, not capital assets.

• Income Tax
• Capital Vs Revenue
• Trading Stock
• Compensation For Loss
• Floating Vs Fixed Capital
• Income-tax

Gerber v Commissioner for Inland Revenue (24/88)

Gerber v Commissioner for Inland Revenue (24/88) [1989] ZASCA 91; [1989] 4 All SA 950 (AD) (29 August 1989)

Court

Supreme Court of Appeal

Case number

24/88

Judges

Corbett, Hoexter, Nestadt, Vivier, Nicholas

The court held that dividend-stripping share dealings were trading, but section 19 applied to scale down both dividend income and related deductions.

• Income Tax Act
• Deductibility Of Expenditure
• Dividend Stripping
• Trading Stock
• Section 19
• Section 8d