Transfer duty test case

SARS is seeking to impose transfer duty at 10%, together with penalties on the sale of such an interest even though the transactions took place before the December 2002 amendments. The writer is of the opinion that the transactions should not attract transfer duty because such a sale, prior to the amendments does not fall within the definition of a "transaction" as defined in the Transfer Duty Act 40 of 1949.

He proposes a test case, which all practices with similar cases should contribute to, thereby avoiding a multiplicity of actions and wasted costs.

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