The Resource TLD Ltd v Commissioner for the South African Revenue Service : Case no 12432

TLD Ltd v Commissioner for the South African Revenue Service : Case no 12432

Label
TLD Ltd v Commissioner for the South African Revenue Service : Case no 12432
Title
TLD Ltd v Commissioner for the South African Revenue Service : Case no 12432
Contributor
Subject
Language
eng
Summary
Judgment by the Tax Court of South Africa, Cape Town, dated 16 November 2010. The taxpayer was a company incorporated and registered in South Africa and quoted on the Johannesburg Stock Exchange. The board of directors met in Luxembourg and resolved that all future board meetings would be held in that jurisdiction. That meant that from then on the taxpayer became effectively managed in Luxembourg and liable to tax there and, as it was a country with which South Africa had a double taxation agreement, ceased to be resident in South Africa. The Commissioner assessed the taxpayer on the basis that when it ceased to be resident in South Africa it was to be treated as having disposed of its assets under the 8th Schedule to the Income Tax Act. The taxpayer objected to the assessment on the ground that gains from the alienation of property, subject to exceptions, were by virtue of the double taxation agreement, taxable only in the contracting state of which the alienator was a resident. The Commissioner argued that that applied only to actual alienations of property and not to deemed disposals. It being common cause that the taxpayer ceased to be resident in South Africa from the date of the board resolution, it was held that a deemed disposal under the schedule to the Income Tax Act was to be treated as an alienation for the purposes of the agreement. There was no reason why such a taxpayer should be protected from tax in the case of an actual alienation of property but not in the case of a deemed disposal
Citation source
In: International tax law reports. - London. - Vol. 13 (2011),
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • tax treaty
  • treaty interpretation
  • disposal
  • residence
Label
TLD Ltd v Commissioner for the South African Revenue Service : Case no 12432
Instantiates
Publication
Label
TLD Ltd v Commissioner for the South African Revenue Service : Case no 12432
Publication

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