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Taxable Income and Tax Deductions re: Approach

HH81-11 : HEYWOOD HAULAGE INVESTMENTS CENTRAL AFRICA (PVT) LTD vs THE COMMISSIONER GENERAL
Ruled By: CHIWESHE JP

The applicant carries on business as a transport operator. During the months of November 2008, December 2008 and January 2009 the applicant availed to its employees' fuel coupons and food hampers as part payment of remuneration due to them.Following an audit of the applicant's business by the respondent in June 2009, the respondent wrote to ...
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Appealed
SC61-17 : ARUNDEL SCHOOL and CHISIPITE SENIOR SCHOOL and ST JOHNS EDUCATIONAL and GATEWAY SCHOOL and ST GEORGES COLLEGE and CHRISTIAN BROTHERS COLLEGE vs ZIMBABWE REVENUE AUTHORITY
Ruled By: GARWE JA, GUVAVA JA and UCHENA JA

This is an appeal against the decision of the Special Court for Income Tax Appeals which dismissed the appellants' appeals against the determination of the Commissioner-General turning down the appellants' objection against an income tax assessment for additional profit tax. The appeal is based on a statement of agreed facts which was summarised in the ...
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Appealed
SC23-18 : STANDARD CHARTERED BANK ZIMBABWE LIMITED vs ZIMBABWE REVENUE AUTHORITY
Ruled By: GUVAVA JA, MAVANGIRA JA and ZIYAMBI AJA

This is an appeal against a judgment of the High Court sitting as an Appeal Court in terms of section 65 of the Income Tax Act [Chapter 23:06] (hereinafter referred to as “the Act”). It concerns certain income tax assessments made in respect of the appellant by the respondent with regard to the years 2009, 2010 and 2011. ...
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Appealed
SC23-18 : STANDARD CHARTERED BANK ZIMBABWE LIMITED vs ZIMBABWE REVENUE AUTHORITY
Ruled By: GUVAVA JA, MAVANGIRA JA and ZIYAMBI AJA

Whether the appellant was correctly held to have earned interest in respect of offshore loans made to various customers in each of the three years of the amended assessments On 6 October 2009, the appellant (sometimes referred to herein as “the Bank”) obtained authority from the External Loans Co-ordination Committee of the Reserve Bank of Zimbabwe (“ELCC”) ...
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HH135-15 : D BANK LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This appeal deals with five issues in four categories arising from the dis-allowance of the tax deductions that were claimed by the appellant in the tax year ending December 2009. The four categories are in respect of expenditure on computer software, foreign currency accruals derived from leveraging a dividend pay-out by a public company quoted on both ...
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HH135-15 : D BANK LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

THE DIVIDEND TRANSACTION The third issue was whether the amount obtained by the appellant in the dividend transaction should be treated as the appellant's taxable income or as non-taxable income when calculating the appellant's taxable income. The facts relating to the dividend transaction were common cause. The Head of Global Markets for the appellant and the local Chief Finance Officer ...
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HH135-15 : D BANK LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

LOAN AGREEMENT OR BESTOWED BENEFIT The fourth issue for determination was whether the amount of R27,632,759=71, that was provided to the appellant by the related party, was a genuine and bona fide loan or was in effect a grant camouflaged as a loan. The facts on this issue are generally common cause. The parties disagree on their interpretation. All the ...
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SC13-19 : ZIMBABWE REVENUE AUTHORITY vs STANBIC BANK ZIMBABWE LIMITED
Ruled By: GUVAVA JA, MAVANGIRA JA and ZIYAMBI AJA

This is an appeal against part of the judgment of the Special Court of Income Tax Appeals. BACKGROUND On 18 November 2012, the appellant issued to the respondent three amended assessments for the tax years ending December 2009, December 2010 and December 2011. The first of these assessments related to computer software acquired by the respondent which the appellant disallowed ...
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SC13-19 : ZIMBABWE REVENUE AUTHORITY vs STANBIC BANK ZIMBABWE LIMITED
Ruled By: GUVAVA JA, MAVANGIRA JA and ZIYAMBI AJA

The issue that arises before the court is whether a special initial allowance could be deducted in respect of the software expenditure by the respondent. The court a quo answered this issue in the affirmative. It is important to look at the relevant provisions dealing with special initial allowance. THE PROVISIONS The starting point is section 15(2)(a) and (c) of the Income ...
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SC13-19 : ZIMBABWE REVENUE AUTHORITY vs STANBIC BANK ZIMBABWE LIMITED
Ruled By: GUVAVA JA, MAVANGIRA JA and ZIYAMBI AJA

The prayer by counsel for the appellant for amendment of the order of the court a quo by the deletion of paragraph 4(b) as well as the reference in paragraph 5 to paragraph 4(b) must, in the circumstances, succeed. Although this conclusion seems to me to be clear and unavoidable, the following discourse ensues if only for the ...
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HH314-16 : AS SCHOOL and CSS SCHOOL and SET COLLEGE and GST SCHOOL and SC COLLEGE and CB SCHOOL vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

These six appeals were filed separately. The parties were all represented by the same firm of legal practitioners', which, in turn, briefed one counsel. All the appeals raised the same legal issues. At the pre-trial hearing of 1 October 2014, the appeals were, for these reasons, consolidated for hearing. In the absence of factual disputes, the parties ...
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HH314-16 : AS SCHOOL and CSS SCHOOL and SET COLLEGE and GST SCHOOL and SC COLLEGE and CB SCHOOL vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

While conceding that section 8(1) of the Income Tax Act had to be considered as a whole and not in fragments, counsel for the appellants sought to persuade me to resolve the first issue by excising paragraph (f) and its consequential provisions from the opening words of the subsection under consideration. In so doing, he suggested ...
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HH314-16 : AS SCHOOL and CSS SCHOOL and SET COLLEGE and GST SCHOOL and SC COLLEGE and CB SCHOOL vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

The second issue referred to trial was whether the computation of the value of such an advantage or benefit was equivalent to the waived amount. The determination of this issue only arises in respect of a tax liability founded on the provisions of section 8(1)(f) of the Income Tax Act. In other words, the issue would not ...
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HH314-16 : AS SCHOOL and CSS SCHOOL and SET COLLEGE and GST SCHOOL and SC COLLEGE and CB SCHOOL vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

The last issue raised by counsel for the respondent pertains to the second and third appellants only. Some of the employees of these two appellants had children enrolled at the other school at the concessionary rates offered by the other school. The respondent taxed the two appellants based on the waived amounts availed by the ...
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HH207-15 : G BANK ZIMBABWE LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This is an appeal filed on 3 September 2013 by a registered commercial bank in the High Court in terms of section 65 of the Income Tax Act [Chapter 23:06]. It arises from taxation in the four areas of staff retrenchment costs, Nostro accounts, Nostro charges [non-resident tax on fees] ...
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HH207-15 : G BANK ZIMBABWE LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This is an appeal filed on 3 September 2013 by a registered commercial bank in the High Court in terms of section 65 of the Income Tax Act [Chapter 23:06]. It arises from taxation in the four areas of staff retrenchment costs, Nostro accounts, Nostro charges [non-resident tax on fees] ...
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HH207-15 : G BANK ZIMBABWE LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This is an appeal filed on 3 September 2013 by a registered commercial bank in the High Court in terms of section 65 of the Income Tax Act [Chapter 23:06]. It arises from taxation in the four areas of staff retrenchment costs, Nostro accounts, Nostro charges [non-resident tax on fees] ...
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HH621-15 : DELTA CORPORATION LTD vs ZIMABWE REVENUE AUTHORITY
Ruled By: HLATSHWAYO J

At the hearing of this matter I dismissed the appeal with costs and indicated that the reasons would follow. These are they.The facts of this case are largely common cause.On 23 May 1996, a firm of accountants, Messrs Deloitte and Touche (hereinafter “Deloitte and Touche”) wrote the following letter to ...
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SC140-21 : MBCA BANK (PRIVATE) LIMITED (Now known as Nedbank Zimbabwe Limited) vs ZIMBABWE REVENUE AUTHORITY
Ruled By: GUVAVA JA, UCHENA JA and MAKONI JA

This is an appeal against the whole judgment of the Special Court for Income Tax Appeals, dated 28 November 2019, upholding the respondent's amended assessment of tax against the appellant.FACTSThe facts of the case can be summarised as follows;The appellant is a registered Bank in Zimbabwe. It is also a ...
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SC140-21 : MBCA BANK (PRIVATE) LIMITED (Now known as Nedbank Zimbabwe Limited) vs ZIMBABWE REVENUE AUTHORITY
Ruled By: GUVAVA JA, UCHENA JA and MAKONI JA

This is an appeal against the whole judgment of the Special Court for Income Tax Appeals, dated 28 November 2019, upholding the respondent's amended assessment of tax against the appellant.FACTSThe facts of the case can be summarised as follows;The appellant is a registered Bank in Zimbabwe. It is also a ...
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HH99-18 : C F (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This is an appeal against four amended income tax assessments number 20211442 for the year ending 31 December 2009; 20211443 for the year ending 31 December 2010; 202211446 for the year ending 31 December 2011; and 20211448 for the year ending 31 December 2012 that were issued against the appellant ...
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HH99-18 : C F (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

The OnusCounsel for the appellant submitted, on the authority of Commissioner for Inland Revenue v Conhage (Pty) Ltd (formerly Tycon (Pty) Ltd 1999 (4) SA 1149 (SCA)…,; 61 SATC 391 (SCA)…, that, the onus was on the Commissioner to show, on a balance of probabilities, that the arrangements between the ...
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HH99-18 : C F (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This is an appeal against four amended income tax assessments number 20211442 for the year ending 31 December 2009; 20211443 for the year ending 31 December 2010; 202211446 for the year ending 31 December 2011; and 20211448 for the year ending 31 December 2012 that were issued against the appellant ...
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HH661-16 : M COMPANY (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

The overall purpose of the Income Tax Act is to tax taxable income "received by or accrued to or in favour of” the targeted taxpayer...,.In K v Commissioner 1990 (1) ZLR (H)…, SMITH J stated that:"I accept, that, it is settled law that the source of any payment means the ...
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HH728-17 : C R S (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

This is an appeal against the four amended assessments issued by the respondent against the appellant on 23 June 2014 in respect of the four consecutive tax years ended 31 December 2009, 2010, 2011 and 2012.The real issue for determination posed by these assessments is whether the respondent can tax ...
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HH728-17 : C R S (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

Determination of the issuesDid the appellant in fact receive the additional income assessed by the respondent, and, if so, what was the source of the income?It was common cause, that, the appellant did not receive the additional income that was assessed by the respondent. Rather, the respondent imputed notional income ...
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HH728-17 : C R S (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

Whether or not the agreement constituted a transaction, operation or scheme?It was common ground that the agreements between the related parties fell into the category of a transaction, operation or scheme.Whether the agreement had the effect of avoiding, postponing, or reducing the income tax liability of the appellant?Counsel for the ...
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HH728-17 : C R S (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

Whether the respondent correctly assessed the appellant?Counsel for the appellant contended, by reference to exhibit 4, that, the assessment was wrong and submitted that it should be set aside.Counsel for the respondent contended, that, the determination contemplated by the concluding words of section 98 of the Income Tax Act was ...
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HH728-17 : C R S (PVT) LTD vs ZIMBABWE REVENUE AUTHORITY
Ruled By: KUDYA J

The answer to the real question before meThe answer to the question whether the Commissioner is empowered by section 98 of the Income Tax Act to impute notional income and proceed to tax it is answered in the affirmative.The closing words of section 98 of the Income Tax Act direct ...
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