Richards Bay Iron & Titanium (Pty) Ltd and Another v Commissioner for Inland Revenue (458/93)
Richards Bay Iron & Titanium (Pty) Ltd and Another v Commissioner for Inland Revenue (458/93) [1995] ZASCA 81; 1996 (1) SA 311 (SCA); (24 August 1995)
The Supreme Court of Appeal held that the relevant stockpiles constituted trading stock as defined in section 1 of the Income Tax Act 58 of 1962. The Court reasoned that the statutory definition deliberately extends beyond colloquial usage to include items produced or manufactured for purposes of manufacture, regardless of their saleability or market value in their current state. The cost price of such stockpiles, including further costs incurred in bringing them to their existing condition and location, must be taken into account in determining taxable income under section 22. The Court reje…
Source excerpt
- Income Tax Assessment
- Trading Stock Definition
- Work In Progress Valuation
- Cost Price Determination