Investigates the income-tax consequences in South African law of the payment of compensation for remunerative loss in instalments in terms of the compulsory Motor Vehicle Insurance Act, the Motor Vehicle Accidents or the Multilateral Motor Vehicle Accidents Fund Act. The series of instalment payments is found to be treated as an annuity for income-tax purposes, since the three essential characteristics of an annuity are present. The payments made to the annuitant must be paid in respect of each instalment. Since the payments also fall within the definition of ‘remuneration’, employees’ tax must be deducted by the defendant from each payment due to the annuitant. The study also analyses the Southern African case law dealing with claims for remunerative loss brought by persons who would, but for their injuries, have been earning income illegally. For purposes of adjudicating these claims, the courts have divided the spectrum of unlawful income-producing activities into three categories. This approach is criticized as unsatisfactory in four respect: (I) the tripartite division of illegal income-earning activities is often overlooked or misunderstood by our courts, (II) the system of classification is difficult to apply in practice, (III) the enforceability of an illegal trader’s income-producing transactions is not a satisfactory test and (IV) the denial of compensation is inconsistent with the adoption of a loss-of-earning-capacity approach to awards of damages for remunerative loss.
|Degree Type||Doctoral degree|