- Constitutional Court judgment on Capitec Bank’s appeal against SARS ruling
- Capitec provides unsecured loans exempt from VAT
- Capitec offers free loan cover to clients in case of retrenchment or death
- Court ruled that loan cover was provided free of charge
- Court clarified that free-of-charge supply can still be considered a taxable supply
- Loan cover was provided in the course of both exempt and enterprise activities
- Court limited Capitec’s deduction under section 16(3)(c) due to apportionment issue
Source: mondaq.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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