Absa and Another v CSARS

A practical training session on understatement penalties before and after 1 April 2026, covering the impact of the Coronation and Thistle cases, the BFIE amendment, and what the new rules mean for taxpayers and advisers.

Binding Private Ruling 424 examines whether interest on a loan used to redeem preference shares and settle related dividends is deductible under section 24J of the Income Tax Act.

“A significant High Court ruling on SARS discretion under the ‘pay now, argue later’ rule, highlighting the importance of rational decision-making, adequate security, and procedural fairness in tax disputes.”

Explore the key changes in SARS’ VDP Guide Issue 2, including eligibility, audit timing, voluntariness, penalties, cross-tax disclosure risks, rejection decisions and the finality of VDP agreements.

Supreme Court of Appeal dismisses SARS’s appeal in CSARS v Erasmus, holding that SARS could not use a rule 31 statement to revise the factual basis and remedy of a GAAR assessment after issuing the assessment.

This discussion examines the critical distinction between objecting to a SARS penalty assessment and requesting remittance under the South African Tax Administration Act.

It unpacks the interaction between sections 104, 215, 220, and 224, highlighting why taxpayers may first need to seek remittance before pursuing objection and appeal remedies and explores the procedural and evidentiary consequences of each route, particularly the shifting onus of proof in understatement penalty disputes and administrative penalties before SARS and the Tax Court.