High Court: 2019-2017

The judgments delivered in any of the High Court Divisions on this page are arranged per year and then per date of delivery.
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2019 ​ ​ ​

Date of Delivery​Parties Involved​Applicable Legislation​Keywords
​13 December 2019Zikhulise Auto Recoveries (Pty) Ltd and Others v Zikhulise Auto Restorers (Pty) Ltd and Others (South African Revenue Service Intervening) (36492/2018)

​Income Tax Act,1962

Tax Administration Act, 2011

​Income tax; tax administration; whether the applicants application to be placed into business rescue met the requirements for business rescue. SARS intervened in the application as the major creditor, as the companies were in liquidation; court held that the entities were both factually and legally insolvent and there was no prospect of meeting the objectives of business rescue, namely rehabilitate the business or obtain a better return for creditors than under insolvency; application dismissed with costs and a final order for insolvency was made
​29 November 2019

CSARS v Spur Group (Pty) Ltd

Minority judgment of 12 November 2019 also included 

​Income Tax Act, 1962​Income tax; section 11(a) of Income Tax Act 58 of 1962; whether contribution to employee share incentive trust in the production of income and hence deductible under section 11(a)
​27 November 2019Dragon Freight (Pty) Limited and Others v CSARS​Customs and Excise Act, 1964​Customs and Excise; section 88(1)(a); whether SARS entitled to seize containers of clothing because of alleged understatement of declared transaction value. Applicant bringing urgent review application to have such seizure set aside
​18 November 2019Brits v CSARS and Another (70549/2015)

​Tax Administration Act, 2001

Value-Added Tax Act, 1991

Promotion of Administrative justice Act, 2000

​Tax administration; value-added tax; rules of the Court; sections 97(4), 104, 106, 170(a), 171 and 190 of the Tax Administration Act;  sections 31 (repealed), 71(2) and (3) of the
Value-Added Tax Act (VAT Act); section 7(1) and (2) of the Promotion of Administrative justice Act (PAJA); Rule 52(2)(b); whether applicant had exhausted internal remedies under section 7(2) of the PAJA; in 2013 and 2014 the applicant had become entitled to refunds of VAT; SARS had raised a VAT assessment in 2000 and set off the amount owing against the refunds due in 2013 and 2014; applicant’s objection against assessment rejected by SARS as invalid; Court finding that applicant had not exhausted the internal remedies under section 7(2) of PAJA, namely, to have the invalid objection declared valid by the tax court; court further finding that the 2000 duplicate assessment produced by SARS  qualified as an extract of an assessment and that under
section 71(3) of the VAT Act the applicant was deemed to have received the 2000 assessment; application dismissed with costs.
​​​25 October 2019Siphayi and Another v CSARS and Others​Tax Administration Act, 2011​Tax Administration; section 184; whether the deducting of funds from the bank account of the first applicant in respect of a tax debt of the second applicant is unlawful and invalid; whether SARS should be ordered and directed to resend notices of intention to hold the first applicant liable for the tax debts of the second applicant
​24 October 2019Glencore Operations SA (Pty) Limited v CSARS​Customs and Excise Act; 1964​Customs and Excise; section 47(9)(e); Schedule 6; appeal against the decision by SARS to refuse an internal appeal lodged by the applicant against a determination by the Commissioner not to allow certain rebates in respect of distillate diesel fuel purchased and used in mining operations conducted by the appellant
​17 October 2019Flordis South Africa (Pty) Limited v CSARS​Customs and Excise Act; 1964​Customs and Excise; appeal under section 47(9)(e) against tariff determination made under Schedule No 1 to the Act; whether Ginsana capsules should be classified as Foodstuffs under tariff heading TH 2016.90.90 (as contended by SARS) or as Medicaments under TH 3004.90.90 (as contended by applicant)
​​10 September 2019​​CSARS v Chakala and Another​​Tax Administration Act, 2011​Tax administration; section 11(4);
whether SARS (applicant) entitled to application for rescission of an order previously granted against it on an unopposed basis
29 August 2019Agricultural and Industrial Mechanisation (Pty) Ltd v CSARS​Tax Administration Act, 2011Tax administration; sections 197 and 200; taxpayer placed in voluntary business rescue; requesting SARS to compromise and permanently write off an amount it owed to SARS under TA Act; SARS declining applicant’s request; whether compromise under Companies Act a compromise under TA Act
​15 August 2019Acti-Chem SA (Pty) Ltd v CSARSCustoms & Excise Act, 1964Customs and excise; rebate item 306.07 of Schedule 3; section 75; rule 75; whether the rebate claimed by the applicant is warranted 
​17 July 2019Wingate-Pearse v CSARS​Income Tax Act, 1962 ​Income tax; section 78(1); whether applicant entitled to relief under review proceedings and an interlocutary application in respect of alleged unlawful and unconstitutional conduct by SARS in raising additional income tax assessments
​11 June 2019Lifman and Others v CSARS and Others​Income Tax Act, 1962  Value-Added Tax Act, 1991 
Tax Administration Act, 2011
Income tax; value-added tax; tax administration; whether appellant entitled to stay of execution process commenced pursuant to taxes raised following the late filing of VAT and income tax returns, and a section 50 enquiry under Part C, Chapter 5 of the Tax Administration Act 28 of 2011​
​31 May 2019

Peter v CSARS

Citation corrected on 16 January 2020

​Tax Administration Act, 2011​Tax administration; section 164; applicant objecting to additional assessments and requesting suspension of payment; such request refused and taken on review; court setting aside decision and remitting to SARS for reconsideration; taxpayer making fresh request but this refused by tier 3 committee;  whether tier 3 committee empowered to make decision; whether taxpayer had been frivolous and vexatious
​27 March 2019Canyon Resources (Pty) Ltd v CSARS (68281/2016) ​Customs and Excise Act, 1964​Customs and excise; rebate item 670.04; “diesel refund”; application for setting aside determination made by Commissioner; “wet rates” and “dry rates”, interpretation of post-recovery and post-mining activities; interpretation of in respect of mining of coal
​6 March 2019​CSARS and Another v Naude​Customs & Excise Act, 1964Customs and excise; ​section 75(1A); 
diesel refunds; whether SARS entitled to condonation under rule 27(1) of the Uniform Rules of Court for failure to lodge an answering affidavit which was lodged six days late

2018 ​ ​ ​

Date of Delivery​Parties Involved​Applicable Legislation​Keywords
​21 October 2018

Gold Kid Trading CC v CSARS

Refer also to the judgment, dated 19 July 2018

​Tax Administration Act, 2011​Tax administration; section 7(2) of the Promotion of Administration of Justice Act 3 of 2000; section 17 of the Superior Courts Act 10 of 2013; whether applicant entitled to leave to appeal to the high court  in respect of a matter pending before the tax court
​28 August 2018Langholm Farms (Pty) Ltd v Commissioner General: SARS (1657/2017)​Customs & Excise Act; 1964

​Customs and Excise Act 91 of 1964;
section 75(1C)(a)(iii); Schedule 6;
applicant transporting pineapples from farm to exporter in trucks with specially designed bins; such trucks refuelled at exporter’s premises, and applicant also using outside contractors to convey pineapples on a dry basis and paying for diesel used; applicant receiving diesel rebates under section 59A as farmer; Commissioner contending that carting of empty crates from exporter to applicant does not qualify as a primary production activity; Court finding in applicant’s favour and issuing declaratory order

The decision was overturned on appeal

​27 August 2018Rampersadh and Another v CSARS and Others​Income Tax Act, 1962
Tax Administration Act, 2011
​Income tax; tax administration;
section 93(1)(d) of Tax Administration Act 28 of 2011; whether applicants were disqualified from bringing an application for judicial review under the Promotion of Administrative Justice Act 3 of 2000 following the Commissioner thrice rejecting a request for reduced assessments under section 93(1)(d)
​27 August 2018Kangra Group (Pty) Ltd v CSARS​ Income Tax Act, 1962​Income tax; sections 11(a), 23 (g) and 89quat(3); whether damages paid by the Appellant as a result of breach of contract, after it sold its coal business, is properly deductible in terms of section 11(a), specifically, whether such payment was incurred in the production of income
​19 July 2018

Gold Kid Trading CC v CSARS

Refer also to the judgment in the application for leave to appeal, dated 21 October 2018 

​Promotion of Administrative Justice Act, 2000
Tax Administration​ Act, 2011
Value-Added Tax Act, 1991
​The jurisdiction of the High Court to entertain ordinary review applications not ousted by the legislative powers given to the Tax Court; The Tax Court has no power to entertain reviews under the Protection of Administration of Justice Act (PAJA); Principles governing failure to exhaust internal remedies envisaged in section 7(2) of PAJA; The court declined to review the decision of SARS pending the outcome of the appeal that the applicant had lodged with the High Court
​28 June 2018BMW South Africa (Pty) Ltd v CSARS​Income Tax Act, 1962​Income tax: Employees’ tax
Paragraph (i) of definition of “gross income” read with paragraph 2(e) of Seventh Schedule to Income Tax Act 58 of 1962; whether tax consulting services rendered to employees and paid for by employer constituted a taxable benefit for such employees
​21 May 2018Red Ant Security Relocation and Eviction Services (Pty) Ltd v CSARS​Tax Administration​ Act, 2011
Promotion of Administrative Justice Act, 2000
Tax administration; section 256(6) of the Tax Administration Act 28 of 2011;  Promotion of Administrative Justice Act 3 of 2000; whether applicant entitled to urgent interim interdictory relief in respect of withdrawal of tax compliance status by SARS
27 February 2018L Taxpayer v CSARS​Income Tax Act, 1962​Income tax; section 11(a) of Income Tax Act 58 of 1962; whether interest incurred in the production of income
7 February 2018CSARS v Short and Another​Transfer Duty Act, 1949​Transfer duty; Sale agreement; whether the transfer duty payable by the Appellants was in respect of a divisible or indivisible sale agreement
​23 January 2018​Ntayiya v SARSIncome Tax Act, 1962
Tax Administration​ Act, 2011
​Income tax; tax administration;
section 11(4) and (5) of Tax Administration Act 28 of 2011;
whether applicant had complied with section 11(4) and (5) in instituting legal proceedings against SARS in the high court, and if not, whether condonation for the non-compliance had been sought

2017 ​ ​ ​

Date of Delivery​Parties Involved​Applicable Legislation​Keywords
​28 November 2017Brits and Others v CSARS​Constitution of the Republic of South Africa, 1996, ​Tax Administration Act, 2011, Value-Added Tax Act, 1991Tax administration; value-added tax; Tax Administration Act (section 42); Constitution of the Republic of South Africa (section 32); Applicant subject of VAT audit; letter of audit findings that all transactions fictitious and that all input tax to be written back; SARS having seized all documentation relating to transactions in question refused to give appellant access to same; Applicant unable to respond meaningfully to audit findings without documentation; applying  to court to direct SARS to provide said documentation; court upholding applicant’s request 
​2 November 2017Zikhulise Cleaning Maintenance and Transport CC v CSARS (34564/2016)

​Income Tax Act, 1962

Tax Administration Act, 2011

​Income tax; tax administration; whether an application for business rescue could succeed where the taxpayer was denied a tax clearance certificate due to its outstanding indebtedness; taxpayer brought two separate applications, one being a review of SARS decision not to agree to a deferred payment arrangement , and the other being the business rescue application; court had already ruled that SARS was not obliged to enter into a deferred payment agreement; parties had both agreed that without a payment arrangement, there could be no basis for a TCC, and without a TCC, the company could not trade; as such business rescue was a non starter; application to place the company in business rescue dismissed with costs
​​2 November 2017CSARS (‘SARS’) v Zikhulise Cleaning Maintenance and Transport CC; Mpisane v Zikhulise Cleaning Maintenance and Transport CC and Another (14886/2016; 18101/2016)

​Income Tax Act, 1962

Tax Administration Act, 2011

​Income tax; tax administration; whether SARS application, as major Creditor of ZCMT, to place ZCMT into provisional liquidation was justified; this relates to case 34564/2016, judgment was given simultaneously, granting SARS application, placing ZCMT into provisional liquidation
27 June 2017Nondabula VZ​Constitution of the Republic of South Africa, 1996, ​Tax Administration Act, 2011, Income Tax Act, 1962​Tax Administration Act; Unlawfulness;
Legality; The Constitution; Income Tax Act; section 96 of the Tax Administration Act
​21 June 2017Calitz v CSARS and Others (10927/2017)​Tax Administration Act, 2011
Supreme Court Act, 1959
​Practice of state attorney not to comply with the rules of court in respect of the time periods for filing of answering affidavits to be discouraged; practice directive 9.9.4 does not entitle a litigant, as of right, to a hearing in the opposed motion court upon appearing in the unopposed motion court and announcing that the matter is now opposed; failure to paginate application, prior to service of the application, does not suspend the dies for filing of answering affidavits
29 May 2017Pienaar Brothers (Pty) LtdConstitution of the Republic of South Africa, 1996, ​Income Tax Act, 1962, Taxation Laws Amendment Act, 2007,
Companies Act, 1973
​Income Tax; Secondary Tax on Companies (STC); Sections 44,
44(9A), 64B  of the Income Tax Act, 1962; Section 34(1)(c) and (2) of the Taxation Laws Amendment Act, 2007; Sections 1(c) and 25(1) of the Constitution of the Republic of South Africa, 1996; Section 85 of the Companies Act, 1973; Amalgamations; Rule of Law; Retrospective Legislative Amendments; Constitution
​10 March 2017Reed v Minister of Finance and Others (30832/2015)​Tax Administration Act, 2011​Tax administration; sections 226, 227 and 229 of Tax Administration Act; reviewing and setting aside unsuccessful VDP application; whether the nature of SARS’s investigations at that stage, precluded the taxpayer from making a voluntary disclosure

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