The Resource Oceanic Trust Co Ltd No v Commissioner for South African Revenue Service : case No 22556/09

Oceanic Trust Co Ltd No v Commissioner for South African Revenue Service : case No 22556/09

Label
Oceanic Trust Co Ltd No v Commissioner for South African Revenue Service : case No 22556/09
Title
Oceanic Trust Co Ltd No v Commissioner for South African Revenue Service : case No 22556/09
Contributor
Subject
Language
eng
Summary
Judgment of the Western Cape High Court of South Africa, judgment date 13 June 2012. The applicant was a Mauritian company which was the sole trustee of a trust in Mauritius. The trust conducted business as captive reinsurer to a financial services company between 2000 until 2006. The premiums of the policies of reinsurance with the trust were transferred to the trust and constituted assets invested by the trust in South Africa and elsewhere in a variety of investments. The trust utilised an asset manager in South Africa to manage the assets invested in South Africa. During the period of its business operations, the trust prepared financial accounts and rendered income tax returns to the Revenue authorities in Mauritius. It was of the view that it only had tax obligations in Mauritius and that it did not have any tax obligations in South Africa. In 2008, the South African tax authorities (SARS) informed the trust that it was to be the subject of an audit or inspection, and in 2009, an assessment letter was sent to the trust, claiming taxes and interest for the tax years 2000 to 2007. One of the bases for the assessment was that the trust was a resident in the Republic because it had its place of effective management (POEM) in South Africa and that it derived income from a South African source which was not exempt from tax. The applicant tried to obtain declaratory relief that the trust was not a resident of South Africa and that the trust had not carried on business through a PE. The judgment is relevant in that it provides guidance to taxpayers as to the view likely to be adopted by a Court in applying the POEM concept. It would also appear to confirm the international view that the POEM is where the key management and commercial decisions are in substance made and not necessarily where those decisions are implemented
Citation source
In: International tax law reports. - London. - Vol. 15 (2012),
Geographic coverage
Africa
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • trust
  • PE
  • residence
  • place of effective management
  • fixed place of business
Label
Oceanic Trust Co Ltd No v Commissioner for South African Revenue Service : case No 22556/09
Instantiates
Publication
Label
Oceanic Trust Co Ltd No v Commissioner for South African Revenue Service : case No 22556/09
Publication

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