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S.Africa: Recent case summaries relevant to tax administrative principles

  • Karin Steenkamp and others v Edcon Limited, decided by Constitutional Court:

This was a labour law matter where the Labour Appeal Court refused the applicants condonation for the late launching of an application in terms of the Labour Relations Act.

The Judgment discusses the principles applicable to appeals against the grant or refusal of condonation

Q: The first issue was whether the Labour Appeal Court was correct in overturning a decision of the Labour Court granting condonation to the applicants.

The principles of granting condonation discussed, can be applied to our tax cases as well.

  • 13868 (Delivered on 27 February 2019) (Tax Court in Bloemfontein):

SARS brought a Rule 56 application for default judgment. The taxpayer requested condonation and postponement and further relief in the notice of motion, which was dismissed with costs. The Court granted the order in terms of section 129(2) of the TAA.

Q: The court found that the Taxpayer was intentionally delaying legal processes.

  • IT24510 (Delivered on 17 April 2019) (Tax Court in Cape Town):

The brief summary is apparent from the legal question.

Q: Whether the sale of the taxpayer’s gift cards constituted as part of its gross income for the purpose of the Income Tax Act as soon as it was received by the taxpayer (as contended by SARS) or would become such only when the card was redeemed or have not been redeemed expired (taxpayer).  The Court found that there was no merit in SARS’ argument.