Samsung argues that its Galaxy S7 is not really a smartphone. Instead, the company claims that the device should be classified as a “telephone for cellular networks.”
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DJ Koh, president and CEO of Samsung Electronics, presents the Samsung Galaxy Note 10 smartphone during a launch event at Barclays Center on August 7, 2019 in the Brooklyn borough of New York City. Samsung announced the Galaxy Note 10 and Galaxy Note 10 Plus smartphones.
However, Business Insider South Africa reported that the high court in Pretoria considers the Samsung Galaxy S7 as a smartphone. Although this is the case, Samsung electronics’ South African arm still went to the court to force the SA Revenue Service or SARS to approve that Galaxy S7 is telecommunications equipment.
Why Samsung claims that it’s not a smartphone
According to Sam Mobile‘s latest report, Samsung insists that its Galaxy S7 is not a smartphone because it doesn’t want South Africa to apply taxes. But, the tech giant manufacturer lost against the SARS.
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The Samsung logo is displayed at the Samsung office on August 25, 2017 in Seoul, South Korea. Prosecutors are seeking a 12-year jail sentence. Lee, de facto chief of South Korean conglomerate, faces five charges connecting the bribery scandal involving ousted former President Park Geun-hye and her confidant Choi Soon-sil. The verdict affects the business of Samsung, which has launched new Galaxy Note 8 smartphone to wipe out the misery of exploding Note 7 last year.
The high court stated that Samsung Galaxy S7 is really a smartphone device, thus preventing the company from having a tax refund. The two sides sought help from an IT specialist named Jacques Van Wyk.
He agreed with Samsung that its Galaxy S7 device is the first and foremost equipment that allows for the connection to a wireless communication network for the transmission, as well as the reception of sounds and other speech, data, or images.
However, he also stated that the Samsung Galaxy S7 is not a telephone for cellular networks.
Proof that Galaxy S7 is a smartphone
Previously SARS categorized Samsung Galaxy S7 as a telephone for cellular networks or for other wireless networks, which are specifically designed for use when carried on hand. However, SARS changed Galaxy S7’s tax treatment retroactively.
However, the SARS argued that it is also used to make calls via Skype and WhatsApp, which simply makes it a smartphone. The agency added that it also has a speaker at one end, which is audible when positioned against the user’s ears. On the other hand, SARS also explained that Galaxy S7 also has a microphone at the other end, allowing it to receive voice or speech sounds from the smartphone owner’s mouth.
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Written by: Giuliano de Leon
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