| Summary: | A taxpayer has the right to arrange his tax affairs within the
constraints of the law to his best advantage to pay the least
amount of tax. Coupled with this right is the taxpayer's right to
certainty, which entails that the time of payment of taxes, the
manner of payment, and the amount of payment must be clear
and plain to the taxpayer and to any other person. Accordingly, a
taxpayer must have peace of mind that revenue laws will not be
amended arbitrarily, retrospectively, and with the effect that the
taxpayer's position is affected negatively. The South African tax
legislation allows the deferral of tax liability when amalgamation
transactions, asset for share transactions, and mergers and
acquisitions are embarked upon by a taxpayer. This article
analyses the judgment in Pienaar v Commissioner: South African
Revenue Services (87760/2014) [2017] ZAGPPHC 231 (29 May
2017) critically with specific reference to amalgamation
transactions, the taxpayer's right to tax certainty, and the
application of retroactive amendments to completed transactions.
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