At issue for determination is whether the interest-free loans made by the taxpayer to connected persons should be exempted from Secondary Tax on Companies (STC).
The court dismiss the taxpayer appeal and held that in spite of Mr. B insistence that the loans should not be regarded as dividends that were distributed to himself, he elected not to testify. Neither did he lead any evidence on his behalf.
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.