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.
2022 | |||
|---|---|---|---|
| Date of Delivery | Parties Involved | Applicable Legislation | Keywords |
| 29 November 2022 New! | Pacific Solar Technologies (Pty) Ltd v CSARS (715/2021) See media summary | Customs and Excise Act, 1964 | Customs and Excise Act 91 of 1964 – whether solar home system has the essential character of an energy source and power generation device or that of a lighting kit – product has a utility of its own – it constitutes a fully functioning lamp – classifiable under tariff heading 9405.40.21 of Part 1 of Schedule 1 to the Act |
| 7 November 2022 | CSARS v The Thistle Trust (516/2021) See media summary | Income Tax Act, 1962 | Revenue – capital gains tax – Income Tax Act 58 of 1962 – capital gains determined in respect of trusts’ disposal of assets vested in a resident trust beneficiary, who in turn made a distribution to its beneficiaries in the same year of assessment – whether section 25B or paragraph 80(2) of Schedule 8 is applicable – whether the appellant was correct in imposing an understatement penalty of 50% and interest. |
| 24 October 2022 | Mobile Telephone Networks (Pty) Ltd v CSARS (805/2021) See media summary | Value-Added Tax Act, 1991 | Tax law – Value-Added Tax Act 89 of 1991 – declaratory order – under which of sections 10(18) or 10(19) pre-paid vouchers fall – fact specific test – narrow basis for declaration of rights in tax matters – clear, uncontested facts necessary – no basis for declaration of rights. |
| 24 October 2022 | See media summary | Tax Administration Act 28, 2011 | Tax Administration Act 28 of 2011 – valuation of shares for purposes of donations tax and capital gains tax – assessment and objection – appeal to tax court – only issues objected to subject to appeal. |
| 7 October 2022 | CSARS v Airports Company for South Africa (785/2021) See media summary | Tax Administration Act, 2011 | Tax Administration Act 28 of 2011 – application for amendment to objection against an additional assessment – no procedure in the Act for amendment of an objection – taxpayer not entitled to amendment in terms of Uniform rule 28(1), read with rule 42(1), of the tax court rules. |
| 28 September 2022 | Samsung Electronics SA ( Pty) Ltd v CSARS (764/2021) See media summary | Customs and Excise Act, 1964 | Customs and Excise Act 91 of 1964 – classification of smartphone as a ‘telephone for cellular networks’ for customs duty. |
| 30 June 2022 | CSARS v Candice-Jean van der Merwe (211/2021) See media summary | Tax Administration Act, 2011 | Income tax – Application for default judgment in terms of rule 56 of the rules prescribed by the Tax Administration Act 28 of 2011 – application failed to meet jurisdictional requirements even on unopposed basis |
| 21 June 2022 | CSARS v Capitec Bank Limited (94/2021) See media summary | Value-Added Tax Act, 1991 Tax Administration Act, 2011 | Revenue – value-added tax – whether a tax fraction of loan cover payouts qualified for deduction in terms of section 16(3)(c) of the Value-Added Tax Act 89 of 1991 – whether loan cover qualified as a taxable supply – no consideration charged for the loan cover – loan cover supplied in the course of business of providing credit – loan cover qualified as an exempt supply – penalty imposed under section 213 of the Tax Administration Act 28 of 2011 remitted |
| 7 June 2022 | CSARS and Others v Dragon Freight (Pty) Ltd and Others (751/21) See media summary | Customs & Excise Act, 1964 | Administrative Law – review of decision to seize goods under section 88(1)(c) of the Customs and Excise Act 91 of 1964 (the Act) – transaction value of goods under-declared – decision lawful, reasonable and procedurally fair – interpretation of section 96(1)(a) of the Act – notice of legal proceedings – requirements peremptory – cause of action must be set out – notice in anticipation of decision not yet taken invalid |
| 6 June 2022 | Rennies Travel (Pty) Ltd v SARS (207/2021) See media summary | Value-Added Tax Act, 1991 Tax Administration Act, 2011 | Revenue – Value-Added Tax Act 89 of 1991 (VAT Act) – supplementary commission received by travel agency after achieving agreed sales targets of international airline tickets – constituted consideration for arranging transport of international passengers – receipts had to be zero-rated under section 11(2)(a) and (d) of VAT Act. Practice – time for lodgement of notice of appeal – conflict between provisions of Tax Administration Act 28 of 2011 and rules of Supreme Court of Appeal – latter subordinate legislation – provisions of Tax Administration Act prevail. |
| 10 May 2022 | See media summary | Companies Act, 2008 | Company law – business rescue – Companies Act 71 of 2008 – section 131(6) – interpretation – section 131(6) provides for the suspension of liquidation proceedings at the time a business rescue application is made – meaning of when business rescue application is ‘made’ – business rescue application must be issued, served by the sheriff on the company and the Commission, and each affected person must be notified of the application in the prescribed manner, to meet the requirements of section 131(6) in order to trigger the suspension of the liquidation proceedings – practice – judgments and orders – interpretation of order – applicable principles – determining the manifest purpose of the order – to be determined by also having regard to the relevant background facts which culminated in it being made |
| 22 April 2022 | CSARS v Sasol Chevron Holdings Limited (1044/2020) See media summary | Promotion of Administrative Justice Act, 2000 | Administrative law – Promotion of Administrative Justice Act 3 of 2000 (PAJA) – application for review of administrative action – delay in instituting application – s 7(1) of PAJA – no agreement between the parties under s 9(1) for extension of period prescribed in terms of s 7(1) – nor application to court under s 9(2) for extension of the prescribed 180 day period |
2021 | |||
| Date of Delivery | Parties Involved | Applicable Legislation | Keywords |
7 December 2021 | Purveyors South Africa Mine Services (Pty) Ltd v CSARS (135/2021) See media summary | Tax Administration Act, 2011 | Voluntary disclosure – whether taxpayer met the requirements of section 227 of the Tax Administration Act 28 of 2011 – Commissioner for the South African Revenue Service had knowledge of information subsequently disclosed and prompted taxpayer to comply – disclosure not voluntary – requirements of section 227 not satisfied – appeal dismissed |
15 October 2021 | CSARS v Spur Group (Pty) Ltd (320/20) See media summary | Income Tax Act, 1962 | Tax Law – Income Tax Act 58 of 1962 (the ITA) – whether there was a sufficiently close connection between the taxpayer’s expenditure of a contribution to a trust in respect of the implementation of an employees’ share incentive scheme and its income producing operations so as to qualify for a deduction under s 11(a) of the ITA – the connection between the contribution and the taxpayer’s production not close or immediate enough to justify the deduction – SARS not precluded from raising additional assessments in respect of the taxpayer’s 2005-2009 years of assessment by operation of the period of limitations provided in s 99(1) of the Tax Administration Act 28 of 2011 |
10 August 2021 | Customs & Excise Act, 1964 | Revenue – Customs and Excise Act 91 of 1964 (the Act) – diesel fuel concession – entitlement to a refund of diesel fuel levy used for primary production in mining – interpretation and ambit of Note 6(f)(iii) of Item 670.04 in Part 3 of Schedule 6 to the Act – claim by entity engaged in mining activities for diesel rebates in respect of period between August 2011 and 13 December 2013 – claim disallowed by Commissioner on grounds that the activities in respect of which claim submitted not constituting primary production activity in mining within ambit of Note 6(f)(iii) but related to secondary activities in mining – decision by the high court overturning the Commissioner’s determination and instead holding that taxpayer entitled to a refund of diesel fuel levy for the relevant period reversed on appeal | |
1 June 2021 | CSARS v Toneleria Nacional RSA (Pty) Ltd (445/2020) See media summary | Customs & Excise Act, 1964 | Customs Duty; classification; wooden items for use in winemaking to impart flavour to the wine; whether coopers’ products |
25 May 2021 | CSARS v Tourvest Financial Services (Pty) Ltd (435/2020) See media summary | Income Tax Act, 1962 | Value-Added Tax Act 89 of 1991; section 2(1)(a); vendor conducting a currency exchange business through its branches; inputs acquired for use partly in making taxable supplies and partly in making exempt supplies; only entitled to deduct a portion of value added tax as input tax |
7 April 2021 | CSARS v Levi Strauss SA (Pty) Ltd (509/2019) See media summary | Customs & Excise Act, 1964 | Customs and Excise Act 91 of 1964; section 49(7); appeal against origin determination; importation of goods from SADC countries; certificates of origin in terms of Annex I to Rules of Origin to the Protocol on Trade in the Southern African Development Community (SADC) Region; validity; goods produced in a member state and sold to purchaser in non-member state; purchaser on-selling goods to an end user in a member state; goods dispatched by producer directly to end user; whether goods consigned directly from one member state to another member state; whether qualifying for favourable rate of duty in terms of Protocol; valuation of goods for purpose of calculating customs duty; determination of transaction value in terms of sections 65, 66 and 67, read with section 74A(1), of the Act; inclusion of commissions other than buyer’s commission under section 67(1)(a)(i) of the Act; what constitutes buyer’s commission; international procurement process; manufacturing process under agent’s control; scope of purchaser’s control of agent; whether commission on purchases through a related company constituted buyer’s commission; transaction value; inclusion of royalties in terms of section 67(1)(c) of the Act; whether royalties due directly or indirectly as a condition of sale of the goods for export to South Africa |
26 March 2021 | Massmart Holdings Limited v CSARS (84/2020) See media summary | Income Tax Act, 1962 | Capital Gains Tax (CGT); taxpayer implementing a share incentive scheme for its key management personnel; scheme conducted through a trust; whether taxpayer suffering capital losses for CGT purposes by virtue of its dealings with, and in relation to, the trust |
2020 | |||
|---|---|---|---|
| Date of Delivery | Parties Involved | Applicable Legislation | Keywords |
| 18 December 2020 | Consol Glass (Pty) Limited v CSARS (1010/2019) | Value-Added Tax Act, 1991 | Tax liability under the Value-Added Tax Act 89 of 1991; services rendered in respect of a debt refinancing transaction; disallowance of input tax deduction claimed in respect of fees paid for services provided by local vendors; imposition of tax on imported services in terms of section 7(1)(c); interpretation of the definitions of “input tax” and “imported services”; meaning of “the purpose of consumption, use of supply in the course of making taxable supplies”; whether Consol was entitled to deduct as input tax the VAT paid on the services supplied to it by local service providers depended upon whether these services were acquired by Consol for the purpose of consumption, use or supply in the course of making taxable supplies; whether Consol was obliged to pay VAT on the services supplied to it by the service providers who carried on their business outside of South Africa, a similar enquiry is required |
| 20 November 2020 | City Power (SOC) Limited v CSARS (1147/2019) | Income Tax Act, 1962 | Income Tax Act 58 of 1962; appellant not a municipality or local sphere of government; appellant’s accruals and receipts not exempt from normal tax under section 10(1)(a) and (b) |
| 20 May 2020 | Fowler (Respondent) v Commissioner for Her Majesty’s Revenue and Customs See Press Summary | Income Tax Act, 1962 | Published for information purposes as it relates to the SA-UK tax treaty |
| 3 April 2020 | Diageo South Africa (Pty) Ltd v CSARS (330/2019) | Value-Added Tax Act, 1991 | Value-Added Tax Act 89 of 1991; interpretation of section 8(15); deeming provision; single supply of advertising and promotional goods and services to non-resident entities; applicability of deeming provision applied to goods portion of the supply; VAT at standard rate correctly levied in terms of section 7(1)(a) of the Act |
| 25 March 2020 | CSARS v United Manganese of Kalahari (Pty) Ltd (264/2019) | Mineral and Petroleum Resources Royalty Act, 2008 | Mineral and Petroleum Resources Royalty Act 28 of 2008; royalty calculation based on gross sales determined in terms of section 6(2)(b), read with section 6(3)(b) of the Royalty Act; gross sales to be determined without regard to any expenditure incurred in respect of transport, insurance and handling of mineral; meaning of “without regard to any expenditure” |
| 25 March 2020 | Telkom SA SOC Limited v CSARS (239/19) | Income Tax Act, 1962 | Income Tax Act 58 of 1962 (the Act); section 24I; losses or gains caused by foreign exchange fluctuations; proviso to section 24I(10); not a self-standing provision for deduction of a commercial loss unconnected to foreign exchange currency differences; Natal Joint Municipal Pension Fund v Endumeni Municipality 2012 (4) SA 593 (SCA); unitary but not uniform exercise in purposive interpretation of contracts and statutes; application of contra fiscum rule and presumption that statute law not unjust, inequitable or unreasonable |
