This article examines the recent decision of the Supreme Court of Appeal of South Africa in the Brummeria case in relation to tax arising on an interest-free loan. The article discusses the facts of the case, the legislative and judicial background, and the Court's judgment. The article also considers some of the criticisms of the judgment and its effect. The article concludes that, although the judgment gave rise to widespread panic, its effect is not as sweeping as may have initially been thought.