In the tax court Cape Town case no 11337. In the matter between Appellant and The commissioner for the South African Revenue Service - Respondent
The present appeal was noted against the Commissioner's disallowing of certain partnership losses claimed by appellant in respect of his share of losses arising from participation in a venture with a third party.The Commissioner also included in appellant's gross income the proceeds of a sale of unit trusts acquired by appellant for one of the years of assessment.
Held that the Commissioner based his ruling on his view that the partnership was not a valid one.The court set out the essential elements of a partnership and held that in determining whether a particular contract gives rise to a partnership, regard must be had both to the essentialia of the partnership as evidenced in the agreement and the intention of the parties.
The court accepted the appellant's evidence, and upheld the appeal.The Commissioner was directed to issue revised assessments.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.