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New Adventure Shelf 122 (Pty) Ltd v Commissioner of the South African Revenue Service

Monday, 22 February 2016   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

The issue concerns how a capital gain accrued as a result of the disposal of an asset in a particular year of assessment falls to be treated for capital gains tax purposes when the contract in terms of which the asset was sold is cancelled during a subsequent tax period, with the effect that the taxpayer does not realise the full proceeds of the disposal that had been taken into account in assessing its taxable income in the year that the asset was disposed of.

The court held that the taxpayer did not have a valid basis to object to or appeal against its 2007 income tax assessment.  It has not shown any reason why that assessment should be amended.  It follows that section 98(1)(d) of the Tax Administration Act cannot be of assistance to it.  The 2007 assessment was in any event not based on an undisputed factual error by the taxpayer in a return.  The information concerning the disposal given by the taxpayer in the relevant return was correct. 

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