Forge Packaging (Pty) Ltd v Commissioner for the South African Revenue Service (21634/2021) [2022] ZAWCHC 119; 85 SATC 357 (13 June 2022)

Forge Packaging (Pty) Ltd v Commissioner for the South African Revenue Service (21634/2021) [2022] ZAWCHC 119; 85 SATC 357 (13 June 2022)

The court refused to grant a direction under section 105 of the Tax Administration Act, finding that the applicant failed to show good cause for the High Court to entertain the review application instead of the Tax Court. The court held that the issues raised were not purely legal and involved factual disputes, particularly regarding whether SARS's process was an 'audit' or a 'verification'. The existence of parallel proceedings in the Tax Court, which could address the applicant's challenges, rendered the High Court forum inappropriate and risked procedural dislocation. The court further found that the review application was brought outside the 180-day period prescribed by PAJA, and the...

Citation
[2022] ZAWCHC 119
Parties
Applicant: Forge Packaging (Pty) Ltd; Respondent: Commissioner for the South African Revenue Service
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
13 June 2022
Case Number
21634/2021
Procedural Posture
Review Application / Application for Judicial Review and Direction Under S 105 of the Tax Administration Act
Outcome
Application for a direction under section 105 of the Tax Administration Act refused; judicial review application struck from the roll; costs awarded to the respondent.
Judges
A.G. Binns-Ward
Legal Topics
Tax Administration Act, Judicial Review, Administrative Delay, Jurisdiction of High Court, Assessment of Tax, Understatement Penalty
Tax Law Civil Procedure Tax Administration Act Judicial Review Administrative Delay Jurisdiction of High Court Assessment of Tax Understatement Penalty

Case Brief

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Parties

Forge Packaging (Pty) Ltd

Applicant

Commissioner for the South African Revenue Service

Respondent

Procedural Posture

Review Application / Application for Judicial Review and Direction Under S 105 of the Tax Administration Act

Legal Issues

  1. 1 Whether the High Court should grant a direction under section 105 of the Tax Administration Act permitting the applicant to challenge additional tax assessments by way of judicial review in the High Court.
  2. 2 Whether the applicant's review application is time-barred under section 7(1) of PAJA and whether condonation should be granted under section 9.
  3. 3 Whether SARS's conduct constituted an 'audit' or a 'verification' for purposes of section 42 of the Tax Administration Act, and whether non-compliance with section 42 vitiates the assessments.

Ratio Decidendi

The court refused to grant a direction under section 105 of the Tax Administration Act, finding that the applicant failed to show good cause for the High Court to entertain the review application instead of the Tax Court. The court held that the issues raised were not purely legal and involved factual disputes, particularly regarding whether SARS's process was an 'audit' or a 'verification'. The existence of parallel proceedings in the Tax Court, which could address the applicant's challenges, rendered the High Court forum inappropriate and risked procedural dislocation. The court further found that the review application was brought outside the 180-day period prescribed by PAJA, and the...

Court Disposition

Application for a direction under section 105 of the Tax Administration Act refused; judicial review application struck from the roll; costs awarded to the respondent.

Orders

  • The application for a direction in terms of section 105 of the Tax Administration Act permitting the review application in the High Court is refused.
  • The applicant's application for judicial review is struck from the roll.