- Appeal against additional assessment raised by SARS
- Issue of whether appellant can claim input tax for expenses on accommodation and meals for employees
- Employees were based on construction sites and provided with accommodation and meals
- Tax Court disallowed input tax claim as appellant is not in the hospitality entertainment business and did not charge employees for meals and accommodation
- Tax Court ordered SARS to remit understatement penalty due to bona fide inadvertent error
- Factors contributing to the error include VAT returns being scrutinized by different personnel, assurance from audit department, and no concern raised by external auditors.
Source: ensafrica.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.
