A Tax Court judgment on a wrong-year deduction highlights the risks of timing errors, section 11(a), VAT section 23C, reduced assessments and whether earlier years can still be corrected.
There has been a great deal of noise about SARS’ trust penalties. On my reading, the real story is both simpler and more significant. SARS has not invented a new penalty. It has extended an old section 210 mechanism to a new class of taxpayer — trusts — at a time when revenue collection and…
When a VAT dispute is settled and paid, can SARS still keep capital alive and charge interest? The Full Court in Inhlakanipho says: not so fast.
High Court in Ferrerìa v CSARS slams SARS’ refusal to suspend payment under section 164 of the TAA, holding that procedural fairness is no shield for irrational decisions. A landmark judgment reshaping SOP disputes and taxpayer rights in South Africa.
When the Tax Court and SARS Disagree — What Should Taxpayers Do Next?
A recent Tax Court judgment found that certain raising fees qualify as “similar finance charges” under section 24J of the Income Tax Act — but SARS’ own Interpretation Note says they do not. This clash of interpretations creates real uncertainty for businesses deciding how to treat these fees for tax purposes. While the court’s decision supports deductibility, SARS’ official stance may lead to additional assessments and penalties — leaving taxpayers to ask: what now? Discover your options and how to navigate this interpretative tug-of-war.
SARS can, in terms of section 95(1)(b) of the Tax Administration Act, 2011 (TAA) raise an assessment based on an estimate if the taxpayer submits information to SARS that is either incorrect or inadequate. How SARS often prepare these estimates is by comparing deposits into the taxpayer’s bank account to turnover declared on the tax…
On 4 June 2025, the SCA ruled[1] that SARS is not required to request condonation if they remedy their default within the 15-day notice period contemplated in rule 56(1) of the Tax Court Rules (“the rules”) gazetted under section 103 of the Tax Administration Act 2011 (“the TAA”). What this means, practically speaking, is that…
On 25 February 2025, the Johannesburg tax court handed down judgment in Taxpayer D v CSARS (IT35476) from which taxpayers can learn three very important lessons in the context of tax dispute resolution: Understand the concept of onus of proof and how to discharge that onus In this case, one of the taxpayer’s companies showed…
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It seems it is/was a common practice amongst some trustees to pass resolutions for distributions to beneficiaries of the trust after the end of the financial year (typically around the time the financials are being finalised). It appears SARS has become aware of this and is holding the trust accountable for the income tax on…
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