Below, please find issue 33 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.
High Court of South Africa, Kwazulu-Natal Division, Pietermaritzburg | Acti-Chem SA (Pty) Ltd v C:SARS
- the taxpayer appealed, in terms of section 47(9)(e) of the Customs and Excise Act, 1964 ("CEA"), a determination letter issued by the SARS which asserted that goods imported by the taxpayer had been used "otherwise than in accordance with the item under which entry was intended for".
- the court considered whether it was sufficient, in terms of Note 1 to Schedule 3 of the CEA, which provided that "[the] imported goods ... shall ... be admitted for use in connection with the production or manufacture of goods in the industries specified", read together with section 75(2)(a) of the CEA, that the product manufactured by the taxpayer was capable of being used in the relevant industry, and that actual use is therefore not required.
- the court considered whether the words "in connection with" required that the goods ultimately be used in the production or manufacture of goods in the relevant industry.
- the court considered whether it was sufficient that the predominant use of the products produced and manufactured by the taxpayer was in the relevant industry, or whether exclusive use for the prescribed purpose was required by a rebate registrant.
- find the full case here.
Download >> Tax In Brief - Issue 33
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