SDC LTD (2) v THE COMMISSIONER-GENERAL ZIMBABWE REVENUE AUTHORITY & THE SPECIAL COURT FOR INCOME TAX APPEALS

Key Issues

• {"issue_text":"Whether OECD Transfer Pricing Guidelines were applicable in Zimbabwe during 2009-2012 tax years","issue_type":"law","dispositive":"no","related_facts":"Appellant argued guidelines constituted customary international law; Commissioner argued they were not legislated"}
• {"issue_text":"Whether the Commissioner lawfully applied section 98 (general anti-avoidance provision) against the appellant","issue_type":"law","dispositive":"yes","related_facts":"Commissioner invoked section 98 to impute management fees and royalties; appellant challenged lawfulness"}
• {"issue_text":"Whether management fees were properly computed and attributed to the appellant","issue_type":"mixed","dispositive":"yes","related_facts":"Commissioner imputed management fees with 25% mark-up; appellant argued services provided at cost"}
• {"issue_text":"Whether royalties were properly computed and attributed to the appellant","issue_type":"mixed","dispositive":"yes","related_facts":"Commissioner imputed royalties for trademark use; appellant argued trademarks had no independent value"}
• {"issue_text":"Whether the 100% penalty was appropriate","issue_type":"law","dispositive":"no","related_facts":"Commissioner increased penalty to maximum 100%; appellant argued excessive"}

Background