Issue 19 – 2018

Posted on: November 30th, 2018 by Francois Hagen

INCOME TAX QUESTIONS WHEN DEVELOPER SELLS PROPERTY IN ONE TAX YEAR AND REGISTERS TRANSFER IN THE NEXT

Milnerton Estates Limited v Commissioner for the South African Revenue Service (1159/2017) [2018] ZASCA 155 (20 November 2018)

From an income tax point of view, where a developer sold erven in a new development in terms of agreements concluded in one tax year (and during which the suspensive conditions were fulfilled), but transfer registering only in the next tax year, in which year did the purchase price accrue to the developer? The Court here confirmed that in the circumstances of this matter, it would be deemed to be in the year that the sale agreements were concluded.

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The Judgment
Summary of the Judgment

CONSEQUENCES OF FRAUDULENT NON-DISCLOSURE IN A SALE AGREEMENT

Rossouw v Hanekom (741/2017) [2018] ZASCA 134 (28 September 2018)

This matter deals with an instance where a seller had fraudulently failed to disclose a defective roof and sewerage system and that he had not obtained municipal approval for alterations to the home. The purchaser was successful in a delictual claim for damages, based on the seller’s fraudulent misrepresentation and fraudulent non-disclosure, the fraudulent actions trumping the voetstoots clause in the sale agreement.

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The Judgment
Summary of the Judgment

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