Assignment task: Courts have often repeated the principle that persons have the right to order their tax affairs in a manner most beneficial to them short of engaging in tax evasion. However there are certain circumstances where tax planning structures have been struck down by the Courts. Review the cases of IRC v. Duke of Westminster, Sasol Oil v. The Commissioner for South African Revenue Services and Methanex Titan (Trinidad) Unlimited v. Inland Revenue. Consider the facts, the reasoning and the decision in each case with the view to determining the consistency in decision making for those engaged in cross-border trade. What are the principles that can be taken from these cases? (Please note that these cases are from different jurisdictions and therefore there is no issue of setting precedent by one Court for another).
Reference:
- RC v. Duke of Westminster
- Methanex Titan (Trinidad) Unlimited v. Inland Revenue
- Sasol Oil v. Commissioner of South African Revenue Service