Tag: Clerical error

Procedural doctrine allowing correction of administrative errors — such as transposition, typographical, or drafting mistakes — in a tax assessment without invalidating it. Tax authorities invoke this to defend challenged assessments, while taxpayers argue the error is substantive and voids liability.

South Africa vs MTN International Ltd (Mauritius), Marts 2014, Supreme Court of Appeal, Case No. 275/2013 [2014] ZASCA 8

South Africa vs MTN International Ltd (Mauritius), Marts 2014, Supreme Court of Appeal, Case No. 275/2013 [2014] ZASCA 8

/ Financial Transactions, Legality - Legitimacy - Constitutional, Clerical error, Formality, Interest deduction, Intra-group loan, Loan, Mauritius
MTN International Ltd (Mauritius) claimed interest deductions on intra-group loans against its South African gross income. SARS issued a revised assessment on the final day before prescription, disallowing the deductions and creating a tax liability of over R73 million. A clerical backdating error led MTN to challenge the assessment's validity. South Africa's Supreme Court of Appeal in 2014 upheld the assessment, ruling that the date error was inadvertent and did not invalidate it ... Read more