NOTIONAL INPUT TAX CREDIT: FIXED PROPERTY ACQUIRED BY A VAT VENDOR FROM A NON-VAT VENDOR

INTRODUCTION Where a VAT Vendor acquires fixed property from a Non-VAT Vendor, such transaction is subject to Transfer Duty at the prescribed rates. Prior to 10 January 2012, the purchasing VAT-Vendor was (under certain circumstances) able to claim the transfer duty paid in respect of the acquisition from SARS as a notional input tax credit.
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The Ins and Outs of the Assets that may be Secured in Notarial Bonds

INTRODUCTION Commonly, creditors need to decide on the method in which to obtain the best security for the due and proper performance by the debtor of its obligations under, for example, a loan agreement. Often, creditors decide on a special and general notarial bond which provides the best possible security in one document without incurring
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NOTARIAL BONDS AS A FORM OF SECURITY

Introduction The registration of a mortgage bond over the immovable property of the debtor (“mortgagor”), in favour of the creditor (“mortgagee”), is a common example of granting security. A lesser known form of security is the notarial bond, which functions in a similar way to mortgage bonds but is registered over the movable property of
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Firstrand Bank Ltd v The Land and Agricultural Development Bank of South Africa (436/13) [2014] ZASCA 115 (18 September 2014)

SUMMARY Court a quo: Firstrand Bank Limited (“Firstrand”) registered a general notarial bond (“GNB”) over all of the movable assets of Rubaco Boerdery (Edms) Bpk (“Rubaco”). Prior to the liquidation of Rubaco, Firstrand obtained an order perfecting its GNB to the amount of R5,500,000.00 (Five Million and Five Hundred Thousand Rand). Thereafter, the sheriff of
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Ikea Trading und Design AG v BOE Bank Ltd (77/2003) [2004] ZASCA 27 (1 April 2004)

SUMMARY The First Respondent, BOE Bank, was the holder of a general notarial bond over Woodlam Industries CC (“Woodlam”) which was placed into final liquidation in October 1999 and as a result, BOE Bank applied to the Eastern Cape High Court for an order that the liquidation and distribution account be amended to include the
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Credit Security and Notarial Bonds

Introduction This article discusses what notarial bonds are, and how they operate as a form of credit security in terms of South African law.   What is Credit Security? When a creditor makes a loan to a debtor, the creditor does so with the hope and expectation that the debtor will repay the loan, usually
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