In the matter of Appellant and the commissioner for the South African Revenue Service held in the tax court Port Elizabeth case no: 11483
The appellant had invested certain amounts of money in a pyramid scheme.
Held that the only issue to be determined at the present stage, as agreed by the parties, was whether interest accrued to the appellant as a result of the investments he made in terms of the definition of gross income in section 1 of the Income Tax Act 58 of 1962.
The court agreed with the appellant that he never had an unconditional right to claim interest from the scheme. Thus, the interest claimed by the appellant from the insolvent estate of the scheme had not accrued to him as required by section 5(1) of the Income Tax Act.
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.