Supreme Court of Appeal: 2019-2017 - South African Revenue Service

The judgments delivered in the Supreme Court of Appeal (SCA) on this page are arranged per year and then per date of delivery. SCA judgments delivered in another year, can be accessed through the navigation pane above.

2019
Date of Delivery	Parties Involved	Applicable Legislation	Keywords
3 December 2019	CSARS v Clicks Retailers (Pty) Ltd Also see media summary	Income Tax Act, 1962	Income Tax Act 58 of 1962; section 24C; claim for allowance in respect of cost of complying with terms of loyalty card programme; customer applying for issue of card; award of points on value of purchases; vouchers issued based on number of points accumulated; vouchers presentable as part payment for future purchases of goods; whether amount received from earlier sales used to finance future expenditure on same contract
29 November 2019	CSARS v Langholm Farms (Pty) Ltd	Customs and Excise Act, 1964	Revenue; diesel fuel rebate; interpretation of section 75(1C)(a)(iii) of the Customs and Excise Act 91 of 1964; exercise of court’s discretion in terms of section 21 of the Superior Courts Act 10 of 2013; whether court appropriately exercised its discretion in circumstances where Commissioner for the South African Revenue Service had not issued a final assessment
21 November 2019	Africa Cash & Carry (Pty) Ltd v CSARS Also see media summary	Income Tax Act, 1962 Value-Added Tax Act, 1991 Tax Administration Act, 2011	Income and value added tax; Tax Administration Act 28 of 2011; powers of tax court to alter assessment under section 129(2)(b); whether SARS proved that the methods of assessment used were reasonable; whether the tax court ought to have remitted the assessment; section 89quat interest
27 September 2019	Atlas Copco South Africa (Pty) Ltd	Income Tax Act, 1962	Income tax; valuation of stock at year end in terms of section 22(1)(a) of the Income Tax Act 58 of 1962
6 September 2019	BMW South Africa (Pty) Ltd Also see media summary	Income Tax Act, 1962	Payment by employer to tax consultants to render assistance to expatriate employees – whether a taxable “benefit or advantage” as contemplated in the definition of “gross income” in section 1 of the Income Tax Act 58 of 1962 read with section 2(e) or (h) of the Seventh Schedule
22 March 2019	Benhaus Mining (Proprietary) Limited	Income Tax Act, 1962	A company that excavates ground and digs up mineral-bearing ore for a fee on delivery to another entity that processes the ore, undertakes mining operations within the meaning of section 1 and 15(a) of the Income Tax Act 58 of 1962. It is thus entitled to claim deductions of the full amount of capital expenditure on mining equipment in the tax year in which it is incurred, in terms of section 36(7C) of the Act
26 February 2019	Purlish Holdings (Proprietary) Limited	Tax Administration Act, 2011	Appeal against imposition of understatement penalties; the appellant’s conduct fell within the category listed in items (a) to (d) of the definition of “understatement” in section 221 of the Tax Administration Act; SARS suffered prejudice; no bona fide or inadvertent error; the imposition of penalties was justified; the increase of understatement penalties by the Tax Court incompetent and set aside

2018
Date of Delivery	Parties Involved	Applicable Legislation	Keywords
3 December 2018	Big G Restaurants (Pty) Ltd	Income Tax Act, 1962	Income Tax Act 58 of 1962; income tax; section 24C; whether income of taxpayer in years of assessment received or accrued in terms of franchise agreement; used to finance future expenditure incurred by taxpayer in the performance of obligations under that agreement; income and obligations must originate from the same contract
20 November 2018	Milnerton Estates Ltd	Income Tax Act, 1962	Income Tax; purchase price of erven in a township sold by developer; sales occurring in one tax year and all suspensive conditions fulfilled in that year; transfer registered and purchase price received in following year; whether purchase price deemed to have accrued in year that sale agreements concluded; section 24(1) of Income Tax Act 58 of 1962; stare decisis
9 November 2018	Sasol Oil (Pty) Ltd	Income Tax Act, 1962	Income tax; contracts for the sale of crude oil by one entity within the Sasol Group, to another, and the back to back sale of the same oil to yet another entity in the group, were not simulated in order to avoid a liability to pay tax, nor were they entered into solely for the purpose of avoiding the payment of tax for the purpose of section 103(1) of the Income Tax Act 58 of 1962
27 September 2018	CSARS v Pieters and Others	Income Tax Act, 1962	Income tax; employees’ tax (PAYE); contracts of employees terminated in terms of section 38(9)(b) of Insolvency Act 24 of 1936; awards to employees not subject to PAYE in terms of paragraph 2(1)(a) of Fourth Schedule to the Income Tax Act 58 of 1962.
19 September 2018	Volkswagen SA (Pty) Ltd Also see media summary	Income Tax Act, 1962	Income tax; valuation of stock at year end; section 22(1)(a) of Income Tax Act 58 of 1962; whether stock to be valued in accordance with International Accounting Standard 2 (IAS 2 or AC 108) at net realisable value
19 September 2018	Amawele Joint Venture cc	Value-Added Tax Act, 1991	Value-Added Tax Act 89 of 1991; zero rating of supplies of services in terms of section 11(2)(s), read with section 8(23) of the Value-Added Tax Act 89 of 1991; whether supplies made in terms of the Housing Subsidy Scheme referred to in section 8(23)
12 September 2018	Respublica (Pty) Ltd Also see media summary	Value-Added Tax Act, 1991	Value-Added Tax Act 89 of 1991; whether the supply of a building and related goods and services to an educational institution for use by its students under a written agreement amounts to the supply of “commercial accommodation” as defined in section 1
27 June 2018 New!	CSARS v South African Breweries (Pty) Ltd	Customs and Excise Act; 1964	Revenue; section 47 of the Customs and Excise Act 91 of 1964; classification of products for determination of excise duty rate; general rules of Interpretation restated; classification of goods primarily on explanatory notes incorrect; appeal dismissed
31 May 2018	KWJ Investment Service (Pty) Ltd Also see media summary	Income Tax Act, 1962	Gross income; whether a cession of a dividend right constitutes a receipt or accrual for the purposes of gross income; if so, does a practice generally prevailing in terms of provision (iii) to section 79(1) of the Income Tax Act 58 of 1962 apply
31 May 2018	Char-Trade CC t/a Ace Packaging	Income Tax Act, 1962, and Tax Administration Act, 2011	Assessment issued for secondary tax on companies (STC); sections 64B and 64C of the Income Tax Act; Commencement of prescription; section 99 of the Tax Administration Act; prescription commences to run against CSARS when return for STC is submitted by the taxpayer; return for STC never submitted by taxpayer; prescription never commenced to run against CSARS – assessment confirmed
29 May 2018	Encarnaçâo N.O. Also see media summary	Customs and Excise Act, 1964	Rebate item 412.09 in Schedule 4/Part 1 of the Customs and Excise Act 91 of 1964; what occurrences fall within vis major; the meaning of ‘such goods did not enter into consumption’
25 May 2018	Daikin Air Conditioning South Africa (Pty) Limited	Customs and Excise Act, 1964	Customs and Excise Act 91 of 1964; classification of articles for customs duty; correct tariff to be applied in respect of ‘window or wall types, selfcontained or “split-system” ’ air conditioning machines and parts thereof
28 March 2018	Danwet 202 (Pty) Ltd Also see media summary	Tax Administration Act, 2011	Condonation for late filing of an appeal against an assessment; section 104(3) of the Tax Administration Act 28 of 2011 mandates a taxpayer to object to a refusal by SARS to extend the period for lodgment; failure by taxpayer to file an objection
28 March 2018	The Executors of Estate Late Sidney Ellerine	Income Tax Act, 1962	Eighth Schedule to the Income Tax Act 58 of 1962; valuation of preference shares for the purposes of determination of a capital gain
27 March 2018	Lion Match Company (Pty) Ltd Also see media summary	Income Tax Act, 1962, and Tax Administration Act, 2011	Income Tax Act 58 of 1962; Tax Administration Act 28 of 2011; dismissal of an application by taxpayer to set aside rule 31 statement; not appealable

2017
Date of Delivery	Parties Involved	Applicable Legislation	Keywords
28 March 2017	New Adventure Shelf 122 (Pty) Ltd Also see media summary	Income Tax Act, 1962 and Tax Administration Act, 2011	Tax Administration Act, 2011: sections 81, 98; Income Tax Act: Eighth Schedule, paragraphs 25 & 35; revenue; capital gains tax arising from sale of immovable property; sale cancelled more than three years after assessment of capital gains tax before purchase price paid in full; seller not entitled to have assessment reconsidered in the light of the subsequent cancellation; regard to be had to the cancellation in assessing a capital gain or loss in year of cancellation

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