When ‘Insurance’ Isn’t: SARS Wins R9.6m Deduction Battle
The Western Cape High Court upheld SARS’s appeal against a Tax Court decision that had allowed Meiring Citrus to deduct R9.6 million as an insurance premium under section 11(a) of the Income Tax Act. The court found that the Santam structured insurance contract was not a true contract of insurance, that the R9.6 million was not expenditure actually incurred, and that SARS was entitled to reopen the prescribed assessment on account of misrepresentation and non-disclosure of material facts.
When ‘Insurance’ Isn’t: SARS Wins R9.6m Deduction Battle Read Post »


