South Africa : Tendencies in Case Law Concerning Cross-Border Tax Disputes in BRICS Countries

This paper forms part of a series providing the opportunity for comparative analysis of the tax treaty case law of the BRICS. The comparative analysis will assist to establish whether or not there are similarities, convergences or disparities in interpretation of international tax treaties by the courts. This paper has South Africa as its focus. The author tells about interpretation of tax treaty cases in South Africa. Author notes, South Africa seems to retain a stronger affinity with drawing on foreign, mainly UK, case law than any reference to the OECD Commentary. Also evident from the case law is the need for clarity in policy when creating deviations from the model conventions, for example where, in the past, certain taxes were carved out from the non-discrimination article. There is an obvious need to develop common and clear meanings in treaty interpretation. This may become another project for legal harmonization between the BRICS.This paper provides an overview of the current state of the South African case law on tax treaty matters.Despite only a few South African cases, when read with the reports of the other BRICS Countries it may be possible to draw some trends and patterns (and perhaps possible harmonization of interpretation) between the BRICS