n Stellenbosch Law Review = Stellenbosch Regstydskrif - Commissioner, South African Revenue Service Brummeria Renaissance (Pty) Ltd and others : does the judgement benefit an understanding of the concept "amount"?

Volume 19, Issue 1
  • ISSN : 1016-4359
  • E-ISSN: 1996-2193



In 2007 6 SA 601 (SCA) the Supreme Court of Appeal held that when an interest-free loan is made, the "right" to retain and use the loan capital interest-free constitutes an which to the taxpayers and forms part of their "gross income" for purposes of the Income Tax Act 62 of 1958 (if it is of a non-captial nature). In response to this judgement, it is argued that only accruing to a taxpayer is capable of constituting such an amount, and of thus forming part of gross income. Furthermore, it is submitted that the "right" to use the loan capital on an interest-free basis cannot be equated with "property" that is acquired by the borrower during the currency of the loan. Such a "right" can thus not be said to constitute an , and it follows that it cannot for purposes of the Act's definition of "gross income".

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