The Importance of Establishing Causation

The recent judgment of the Supreme Court of Appeal in Western Platinum Ltd v C:SARS 67 SATC 1 provides a good example of the importance of the distinction between sine qua non and causa causans in the tax context. It is also of interest because it deals with the special tax regime for miners. Historically mining and farming, as pillars of the economy for nearly a century, enjoyed special tax benefits, which the courts have been at pains to protect against abuse by other taxpayers. The taxpayer, a mining company, earned interest income from various sources: local bank accounts, overseas bank accounts, money placed on overnight call, money on fixed deposit, customers, export incentives, the refund of mining lease rentals, and SARS in respect of tax refunded.