Does a mineral right constitute 'immovable property' for purposes of the Income Tax Act and double tax treaties?

• Main Author: Govender, Preshnee
• Other Authors: Gutuza, Tracy
• Format: Dissertation
• Language: English
• Published: University of Cape Town 2014
• Subjects: Tax Law
• Online Access: http://hdl.handle.net/11427/9170

Includes bibliographical references. === This research paper analyses the income tax impact for international (non-resident) companies that dispose of their shares in mining or oil and gas companies situated in South Africa. Typically, a disposal of shares by a non-resident in a property-rich company in South Africa would attract CGT. In the case of the minerals sector, it is automatically assumed that a mining or oil and gas company is a so-called “land-rich” or “property-rich” company due to the nature of its operations. This paper seeks to test that assumption, ie do shares in a mining or oil gas company whose only asset is a mining or prospecting right or exploration or production right respectively qualify as an ‘interest in immovable property’ as that term is defined in the ITA for CGT purposes? To make this determination, the term ‘immovable property’ as it is used for common –law purposes and the potential misalignment of this definition when compared to the term as it is used in the ITA must be analysed.