Absa Bank Limited and Another v Commissioner for the South African Revenue Service (21825/19) [2020] ZAGPPHC 414 (25 August 2020)

Absa Bank Limited and Another v Commissioner for the South African Revenue Service (21825/19) [2020] ZAGPPHC 414 (25 August 2020)

The court held that the applicants should be granted leave to amend their notice of motion to include review of SARS's decisions to issue letters and notices of assessment. The amendments are closely connected to the existing grounds of review and do not introduce new causes of action that would prejudice the...

Source-derived case information.

Citation
[2020] ZAGPPHC 414
Parties
Applicant: Absa Bank Limited; Applicant: United Towers Proprietary Limited; Respondent: Commissioner for the South African Revenue Service
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 August 2020
Case Number
21825/19
Procedural Posture
Review Application / Application for Leave to Amend Notice of Motion in Pending Review
Outcome
Leave to amend the notice of motion is granted with costs, including the costs of two counsel.
Judges
Fabricius
Legal Topics
Tax Assessment Review, Impermissible Tax Avoidance, Exhaustion of Internal Remedies, Amendment of Notice of Motion, Jurisdiction of High Court
Tax Law Civil Procedure Tax Assessment Review Impermissible Tax Avoidance Exhaustion of Internal Remedies Amendment of Notice of Motion Jurisdiction of High Court

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Parties

Absa Bank Limited

Applicant

United Towers Proprietary Limited

Applicant

Commissioner for the South African Revenue Service

Respondent

Procedural Posture

Review Application / Application for Leave to Amend Notice of Motion in Pending Review

Legal Issues

  1. 1 Whether the applicants should be granted leave to amend their notice of motion to include review of SARS's decisions to issue letters and notices of assessment.
  2. 2 Whether the proposed amendments introduce new causes of action or merely supplement existing grounds.
  3. 3 Whether the amendment would cause prejudice or injustice to the respondent that cannot be remedied by costs.

Ratio Decidendi

The court held that the applicants should be granted leave to amend their notice of motion to include review of SARS's decisions to issue letters and notices of assessment. The amendments are closely connected to the existing grounds of review and do not introduce new causes of action that would prejudice the respondent. The respondent will have the opportunity to respond fully in the main application, and any potential prejudice can be remedied by costs. The High Court retains jurisdiction to review such decisions, and the statutory remedies under the Tax Administration Act do not oust this jurisdiction. Refusing leave to amend would result in unnecessary duplication and increased costs,...

Court Disposition

Leave to amend the notice of motion is granted with costs, including the costs of two counsel.

Orders

  • Prayers 1 and 2 of the applicants' notice of motion in the Rule 28 application are granted.
  • The respondent may file a further answering affidavit in the main application within 15 days of this order.