The court decision in the case of Woulidge – A practical application
This article comprises an attempt to find a practical method of applying the decision in the case of the Commissioner for the South African Revenue Service v Woulidge (63 SATC 483) (‘Woulidge’) to limit the application of section 7(3) of the Income Tax Act (‘the Act’).It is proposed in this article that Woulidge would also apply to the provisions of section 7(5) and paragraphs 69 and 70 of the Eighth Schedule to the Act.The approach proposed is illustrated by means of examples.The approach adopted by the Commissioner for the South African Revenue Service is also discussed.A conclusion is drawn regarding the practicality of applying Woulidge in the light of the examples.
Woulidge, Joss, Ovenstone, s 7(3) , s 7(5) s 25B(1) , para 69 para 70 , limits trusts ,estate planning interest-free loans , attribution distribution ,capital gains tax anti-avoidance
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