15 January 2024 – Income Tax Act, 1962, and Tax Administration Act, 2011
Enviroserv Waste Management (Pty) Ltd v CSARS (154/2022) [2023] ZASCA 180 (18 December 2023)
Income tax law – section 12C(1)(a) of the Income Tax Act 58 of 1962 (the ITA) – whether cells built into landfills and used for treatment and storage of waste qualify as plant under the section – whether they qualify as buildings under section 13 of the ITA – decomposition and biodegradation of the waste in the cells is a process similar to manufacture – the appellant is entitled to claim depreciation allowance in respect of the cells.
Income tax law – understatement penalty imposed for an incorrect statement made in income tax returns – reasonable care not taken in completing returns – Commissioner for the South African Revenue Service did not prove prejudice under section 102 read with sections 221 and 223 of the Tax Administration Act 28 of 2011.
