1. In 2004 Ackermans Ltd sold its retail business as a going concern to Pepkor Ltd. Ackermans claimed a deduction under the Income Tax Act of R17m in respect of three liabilities which Pepkor had assumed under the sale agreement. The Commissioner of the SA Revenue Service disallowed the deduction. The SCA held that Ackermans had incurred no expenditure in respect of the three liabilities and was accordingly not entitled to any deduction.

2. An appeal by Pep Stores (SA) Ltd for similar relief was dismissed for the same reason.