Tax Court: 2022-2020

The judgments delivered in the Tax Court on this page are arranged per year and then per date of delivery.
 
Tax Court judgments delivered in another year, can be accessed through the navigation pane above.
 
2022
Date of Delivery Case Number Applicable Legislation Keywords
23 August 2022
New!
35476

Tax Administration Act, 2011

Tax administration: A point in limine raised by SARS that the matter be referred back to the Commissioner for reconsideration and assessment. The structure of section 129

17 August 2022
New!
IT 45628

Income Tax Act, 1962

Tax Administration Act, 2011

Income tax – tax administration – restraint of trade: Whether section 1(cB) finds application to the restraint of trade agreement concluded between the Appellant and the company – whether there is a causal link between the restraint of trade and the previous employment of the appellant and his previous directorship of the company 

14 July 2022 IT 25042

Income Tax Act, 1962

Tax Administration Act, 2011

Income tax: General deduction formula – specific deduction provision for interest expenditure incurred notwithstanding that the interest would, inter alia, ordinarily not be deductible under the general formula – whether the finance charges levied in respect of the loans of Propsky and RMB constituted interest for the purposes of section 24J – whether the understatement penalty was correctly levied

10 May 2022 VAT 1826 Tax Administration Act, 2011

Tax administration; Uniform Rules of the Court – whether the respondent has shown good cause for its default to timeously file the statement and whether the court should condone the late filing of the respondent’s statement in terms of Tax Court Rule 31 and direct that the appeal (against the imposition of understatement penalties) proceeds on the merits. If the failure is not condoned, whether default judgment in terms of Rule 56(1)(a), read with section 129 of Act 28 of 2011 should be granted in favour of the applicant.

8 April 2022 24578 Tax Administration Act, 2011

Tax administration; Uniform Rules of the Court: Whether it is correct, lawful or appropriate for MB to deduct capital expenditure incurred at its AA mine from the revenue earned at its BB and CC mines

16 March 2022 35448 Tax Administration Act, 2011
Income Tax Act, 1962

Tax administration; income tax: (a) Whether management fees claimed by Taxpayer Z in the sum of R16 million, made up of management fees excluding value-added tax are expressed in the financial accounts of Taxpayer Z as “management fees”.

(b) Whether SARS was entitled to impose interest under Act 58 of 1962, and whether SARS should have remitted that interest.

(c) Whether SARS was entitled to impose an understatement penalty of 125% under Act 28 of 2011.

(d) Whether Taxpayer Z or SARS should pay the costs of the appeal. 

25 February 2022 IT 45842 Tax Administration Act, 2011 Tax administration: Whether SARS’s delay is so egregious that it should not be countenanced. The second is whether the taxpayer is entitled to the substantive relief which it seeks, namely, the upholding of its appeal in relation to its 2016 to 2018 years of assessment.
9 February 2022 IT 14213 Tax Administration Act, 2011 Tax administration: Whether the interest sought to be deducted by the appellant was incurred whilst carrying on a trade; and (ii) whether it was incurred in the production of income. Whether the respondent has successfully discharged the onus resting on it for its imposition of the understatement penalty against the appellant.
14 January 2022 IT 45585 Employment Tax Incentive Act, 2013
Tax Administration Act, 2011
Employment tax incentive; tax administration: Whether the respondent is correct in contending, as in its dismissal of the appellant’s objection, that on a proper interpretation of sections 9(4) and 10(3) of Act 26 of 2013 and the deeming provisions contained therein, the appellant is not entitled to recover the understated amount
2021 
Date of Delivery Case Number Applicable Legislation Keywords
14 December 2021 IT 45627 Income Tax Act, 1962
Tax Administration Act, 2011
Income tax; tax administration: whether the taxpayer was entitled to the allowances claimed for ‘machinery or plant’ in respect of the construction of its landfill cells; claim for future expenditure in respect of amounts included in its deduction calculations; whether SARS was entitled to levy understatement penalty (USP)
30 November 2021 0059/2019 Tax Administration Act, 2011 Tax administration: Uniform Rules of the High Court: whether SARS “made a capturing/processing error where the business kilometres travelled were not correctly captured for the taxpayer’s tax return”; whether a request for further documents in terms of rule 8 was compulsory
19 November 2021 2020/95 Tax Administration Act, 2011 Tax administration; Uniform Rules of the High Court: whether the applicant is entitled to the final relief in the form of default judgment because the respondent did not file rule 31 statement
18 November 2021
IT 25117 Tax Administration Act, 2011
Uniform Rules of the High Court
Tax administration; Uniform Rules of the High Court: whether the step followed by the respondent is irregular
19 October 2021 25330; 25331 and 25256 Tax Administration Act, 1962 Tax administration: whether SARS correctly invoked uniform rule 30; whether SARS has demonstrated prejudice
15 October 2021
IT 24790 Income Tax Act, 1962 Income tax: whether appellant was entitled in 2015 income tax return to deduct from gross income the amounts it contends it incurred pertaining to accrued leave and bonus pay, notice pay and severance pay; and whether a deduction of the leave and bonus pay liabilities is precluded by section 7B
8 October 2021 VAT 2060 Value-Added Tax Act, 1991 Value-added tax: whether SARS or the fiscus was left in a financially neutral position; whether there was an agreement concluded between the Venture and AB and CD, which satisfies the proviso to subsection 22(3)(b); whether the conversion of short-term debts to long-term liabilities between two companies constituted payment of the short-term debts
17 September 2021 IT 24596 Income Tax Act, 1962 Income tax: whether the appellant is not liable to pay the additional tax, as it avers, it must prove that the net income of appellant are excluded because appellant is a foreign business establishment; whether section 9D(9)(b) is applicable or not; to make that determination it must be decided whether the business conducted by AB satisfies the terms of the provisions of section 9D(9)(a)
5 August 2021 IT 24988 Tax Administration Act, 2011 Tax administration: for court to decide against the decision of the respondent to impose an understatement penalty in terms of Act; the UP was levied in relation to the 2014 year of assessment at the rate of 25%
16 July 2021 14232 Income Tax Act, 1962 Income tax: whether income was to revenue or capital in nature
21 June 2021
VAT 1908 Value-Added Tax Act, 1991 Value-added tax: whether the appellant was correct in deeming a supply as exempt
18 June 2021
IT 24888 Tax Administration Act, 2011 Tax administration: sections 222 and 223; whether the respondent was entitled to charge a 25% understatement penalty on the taxpayer
4 June 2021 24682 Tax Administration Act, 2011 Tax administration: whether the appellant was entitled to a continuance of the matter
31 May 2021 IT 25242 Income Tax Act, 1962
Tax Administration Act, 2011
Income tax: whether the Appellant was entitled to deductions and waiver of penalty
31 May 2021 0092/2019 Tax Administration Act, 2011 Tax administration; Tax Court Rule 42: whether the applicant was entitled to amend its objection
18 May 2021 IT 25390 Income Tax Act, 1962 Income tax: section 30; whether the Appellant was entitled to be deemed to be a PBO
23 April 2021 13395 Income Tax Act, 1962 Income tax: whether the appellant was liable for capital gains tax
31 March 2021
IT 13178 Income Tax Act, 1962 Income tax: whether the appellant should be taxed on unexplained deposits in its bank account
30 March 2021
VAT 1999

Tax Administration Act, 2011
Value-Added Tax, 1991

Tax Administration; Value-added tax; Rules of the Court: whether the appellant could amend its Rule 32 Statement
18 March 2021 IT 24918

Income Tax Act, 1962

Income tax: capital gains; whether the appellant was liable for capital gains tax under section 25B of the Income Tax Act
25 February 2021
IT 24606 Income Tax Act, 1962 Income tax: whether the appellant could claim capex in terms of section 15(b) of the Income Tax Act
27 January 2021
IT 24578 Tax Administration Act, 2011 Tax administration; Rules of the Court: whether the appellant was entitled to amend its Rule 32 Statement
6 January 2021 IT 14305 Income Tax Act, 1962 Income tax: separation of issues; whether the appellant’s application to separate issues under Rule 33(4) should be allowed
 
2020 
Date of Delivery Case Number Applicable Legislation Keywords
11 December 2020 Estate Duty Act, 1955 Estate duty: separation of issues; whether certain Kruger coins should be valued under section 5(1) of the Estate Duty Act
11 December 2020
VAT 1715 Value-Added Tax Act, 1991

Value-added tax: output tax; commission; airline; whether the appellant was liable for output tax in respect of commissions on airline tickets

9 December 2020 14184 (IT) 14186 (PAYE) 1544 (VAT) Income Tax Act, 1962
Value-Added Tax Act, 1991
Income tax; value-added tax: whether the appellant was liable for understatement penalty (USP)
26 November 2020 VAT 1904 Value-Added Tax Act, 1991 Value-added tax: whether the appellant was entitled to the deduction it claimed under section 16(3)(c) of the VAT Act
25 November 2020 24674 Income Tax Act, 1962

Income tax: taxpayer in assessed loss position; SARS in determining taxpayer’s liability to tax imposed an understatement penalty (USP) for no reasonable grounds for tax position taken.

Dispute:

  • Onus – Bona fide/inadvertent error
  • Prejudice SARS
12 November 2020 IT 24502; IT 24503 Income Tax Act, 1962 Income tax: strike out; novation; whether the appellants’ application to strike out and dismiss the respondent’s Rule 31 Statement should be allowed
27 October 2020 13230 Income Tax Act, 1962 Income tax: gross income; whether the respondent was correct to include in the appellant’s gross income certain foreign income amounts
20 October 2020 0035/2018 Tax Administration Act, 2011 Tax administration: whether the appellant, by way of a Rule 56 application, was entitled to judgment against the respondent
1 September 2020 0085/2019 Tax Administration Act, 2011 Tax administration: whether the appellant was entitled to the relief it sought in terms of filing a late objection
31 August 2020 14302 Tax Administration Act, 2011 Tax administration: whether the appellant was entitled to the relief sought under a Rule 56 application wherein it sought to compel the respondent to discover certain documents
3 June 2020 0034/2019 Tax Administration Act, 2011 Tax administration: whether the appellant was entitled to the relief sought under a Rule 56 application wherein it argued that SARS failed to comply with a court order
1 June 2020 0037/2019 Tax Administration Act, 2011 Tax administration: whether the Appellant was entitled to the relief it sought in terms of a Rule 52 application
27 May 2020 24720 Tax Administration Act, 2011 Tax administration: whether an alteration of an assessment is competent
29 April 2020 VAT 1712 
(Fringe benefit)
Value-Added Tax Act, 1991 Value-added tax: fringe benefit; whether the Appellant was liable for output tax in respect of fringe benefits under section 18(3) of the VAT Act
29 April 2020 VAT 1712 (Supply) Value-Added Tax Act, 1991 Value-added tax: supplies; whether the Appellant was entitled to input tax claims and whether it met the requirement of “supplies”” in the VAT Act
27 March 2020 13720 Tax Administration Act, 2011 Tax administration: revised assessments; USP; methodology; whether the respondent was entitled to revise certain assessments and impose a USP on the appellant
3 March 2020 VAT 1626 Value-Added Tax Act, 1991 Value-added tax: input tax; whether the appellant was entitled to certain input tax deductions
25 February 2020 VAT 1857 Value-Added Tax Act, 1991

Value-added tax: input tax; whether the respondent was entitled to reduce the Appellant’s notional input tax claims

The respondent (being the appellant in the case a quo) withdrew from the appeal. A notice of withdrawal of opposition and abandonment of judgment in favour of SARS was therefore issued by the high court under section 141 of the Tax Administration Act, 2011.

24 February 2020 13950 Tax Administration Act, 2011 Tax administration: postponement; whether the appellant’s application for a postponement should be entertained

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