In Delport v Le Roux and Others[1], the court’s judgment, delivered on 24 November 2022, is a r...
Reinstating a deregistered company : SARS binding private ruling BPR 237
Wednesday, 22 June 2016
The common incidence of companies being deregistered when their CIPC returns are in arrears has resulted in immovable properties registered in the names of these companies becoming bona vacantia and reverting to state ownership. This requires court applications to reinstate the companies and restore their ownership of the properties involved. In Binding Private Ruling 237,
- Published in Corporate restructuring rules, Income Tax
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When are you conducting farming operations? SCA confirms the correct approach
Saturday, 26 March 2016
On 1 March 2016 the Supreme Court of Appeal in CSARS v Kluh Investments (Pty) Ltd, case No 115/2015, confirmed the decision of the Western Cape High Court that the taxpayer was not conducting farming operations. In doing so it provided a good example of the correct approach to interpreting fiscal, and indeed any, legislation.
- Published in Income Tax, Interpretation of statutes
The Capstone case : share sales, equity kickers and indemnities
Thursday, 21 May 2015
In Capstone 556 (Pty) Ltd v CSARS [2014] 77 SATC 1 WC the Western Cape High Court heard an appeal from the decision of the tax court. In issue were: the nature of the proceeds of a disposal of shares; the deductibility of a so-called “equity kicker” by the taxpayer; and how to treat an
- Published in Capital gains tax, Income Tax
A lesson in interpreting legislation
Wednesday, 20 May 2015
In September 2014 in Kluh Investments (Pty) Ltd v CSARS [2015] 77 SATC 23 WC the Western Cape High Court delivered a judgment that stands as a model of the interpretation of legislation. The core issue was the meaning of “farmer” for purposes of the First Schedule to the Income Tax Act. In most cases
- Published in Income Tax, Interpretation of statutes
Deductibility of damages and the eiusdem generis principle in interpretation
Tuesday, 05 May 2015
In Mr Z v CSARS, case number 13472, heard in the Johannesburg tax court in November 2014 and recently reported, the taxpayer sought, unsuccessfully, to claim a deduction for damages he had paid in settlement of a dispute with a former client. In arriving at its judgment, the court dealt with the application of the
- Published in Income Tax, Interpretation of statutes, Tax Administration Act
Court rebukes SARS for overly zealous use of preservation provision
Tuesday, 17 March 2015
In a judgment delivered in the High Court of the Western Cape on 9 September 2014, Rogers J rejected SARS’s application for a preservation order and appointment of a curator bonis on the grounds that there was no evidence of a danger that the assets of the taxpayers were likely to be dissipated. The court
- Published in Income Tax, Interpretation of statutes, Tax Administration Act
The tax treatment of a farmer’s reaped crop
Tuesday, 10 March 2015
When a farmer delivers his grape harvest to the co-op, do the grapes remain his during the maturation process while they are turned into wine? If so, they would comprise stock in hand and would have to be brought into account in the farmer’s tax return for the year of assessment. This was the question
- Published in Income Tax
Tax information exchange agreement with the Cook Islands
Thursday, 15 January 2015
The tax information exchange agreement between South Africa and the Cook Islands was signed on 25 October 2013 and published in the Government Gazette on 8 January 2015.
- Published in General, Income Tax, International
SARS Penalties at a glance
Tuesday, 02 September 2014
The penalty regime introduced in the Tax Administration Act, 2011 (TAA) has caused confusion. This article seeks to clarify the position and eliminate the confusion. The TAA sets out the penalties that can affect taxpayers. This contrasts with the former situation where the provisions for penalties were scattered all over the tax Acts. The TAA
- Published in Income Tax, Value-added tax
SARS must not bully audited taxpayers
Tuesday, 01 July 2014
A recent appeal case South African Revenue Service v Pretoria East Motors (Pty) Ltd, sets out the standard that SARS is expected to uphold when auditing taxpayers. SARS must try to understand the systems used by taxpayers before raising additional assessments and imposing penalties for incorrect tax treatment. The court criticised SARS for employing bullying
- Published in Income Tax, Value-added tax