Commissioner, South Afrikan Revenue Service v Brummeria Renaissance (PTY) LTD and others : does the judgement benefit an understanding of the concept amount
Date
2008-01
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Juta Law Publishing
Abstract
INSTRODUCTION: It has been said that the decision by the Supreme Court of Appeal (SCA) in Commissioner, South African Revenue Service v Brummeria Renaissance
(Pty) Ltd is the most important tax case decided in the past 30 years. The
case has far-reaching consequences for the many retirement village developers
who financed the construction of units in retirement villages by obtaining
interest-free loans from retirees in return for granting occupation rights in
respect of these units. Questions have also been raised regarding the possible
application of the decision to other interest-free loans and even other areas of
taxation law.
The case deals with the question whether a borrower of money under an
interest-free loan can be taxed on the “benefit” of not having to pay interest.
This paper argues that this question should be answered in the negative, since
the borrower does not acquire property and no amount accordingly accrues
to or is received by her, as required by the definition of “gross income”.
Description
CITATION: Jansen Van Rensburg, E. 2008. Commissioner, South African Revenue Service v Brummeria Renaissance (Pty) Ltd and others : does the judgement benefit an understanding of the concept "amount"?. Stellenbosch Law Review = Stellenbosch Regstydskrif 19(1):34-50.
The original publication is available at https://journals.co.za/content/journal/ju_slr
The original publication is available at https://journals.co.za/content/journal/ju_slr
Keywords
South African Revenue Service, Taxation -- Benefit theory, Interest-free loans -- Taxation, Tax exemption, Real estate developers -- Taxation, Gross income -- Definition
Citation
Jansen Van Rensburg, E. 2008. Commissioner, South African Revenue Service v Brummeria Renaissance (Pty) Ltd and others : does the judgement benefit an understanding of the concept "amount"?. Stellenbosch Law Review = Stellenbosch Regstydskrif 19(1):34-50.