n Without Prejudice - Issues of fact and law : tax
|Article Title||Issues of fact and law : tax|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Affiliations||1 Werksmans and 2 Werksmans|
|Publication Date||Sep 2011|
|Pages||26 - 27|
On June 13 2011, the Western Cape High Court handed down judgement on a case in which the court was approached by the trustees of a trust established in Mauritius for a declaratory order that:
- the Trust is neither a resident nor does it have a permanent establishment in South Africa and is, therefore, not liable or chargeable for tax in South Africa; and
- South African Revenue Service is liable to repay an amount of R20 million unilaterally removed from the Trust's South African bank account. This was done based on a purported tax assessment and after appointing the bank as agent of the Trust in terms of s99 of the Income Tax Act (58 of 1962 (the Act)). The R20 million was removed from the Trust's bank account before the "due date" indicated on the "assessment letter".
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