ARTICLE · 10 FEBRUARY 2021

Tax In Brief | Issue 56

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◦Consol Glass (Pty) Ltd ("Consol") (the then shell company) acquired the business of the listed company Consol Limited in 2007. The acquisition formed part of a leveraged buy-out or debt...

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Supreme Court of Appeal | Consol Glass (Pty) Ltd v Commissioner for the South African Revenue Service
- Consol Glass (Pty) Ltd ("Consol") (the then shell company) acquired the business of the listed company Consol Limited in 2007. The acquisition formed part of a leveraged buy-out or debt pushdown by securing debt funding in the form of Eurobonds. In 2012, Consol entered into a refinancing transaction as regards the original debt and hedging positions (as it was cheaper to swap foreign funding for local funding). In doing so, it procured the services of both local service providers and foreign service providers.
- Consol claimed an input tax deduction for the value-added tax ("VAT") charged by the local service providers and did not pay VAT on imported services in respect of services rendered by foreign service providers.

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