Forge Packaging (Pty) Ltd v The Commissioner for the South African Revenue Service (21634/2021) [2022] ZAWCHC 163 (26 August 2022)

Forge Packaging (Pty) Ltd v The Commissioner for the South African Revenue Service (21634/2021) [2022] ZAWCHC 163 (26 August 2022)

The court held that the applicant failed to seek the required direction under section 105 of the Tax Administration Act to challenge the revised assessments by way of judicial review in the High Court. The applicant's reliance on PAJA was misplaced, as review proceedings in the High Court are only available exceptionally and not as of right. The Tax Court is competent to determine the legality of the assessments in the context of the pending appeal, and the applicant faces delay-related problems under PAJA that do not arise in the tax appeal. The discretion to grant a direction under section 105 was properly exercised, and there is no reasonable prospect that an appellate court would find...

Citation
[2022] ZAWCHC 163
Parties
Applicant: Forge Packaging (Pty) Ltd; Respondent: The Commissioner for the South African Revenue Service
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
26 August 2022
Case Number
21634/2021
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Against Refusal to Entertain Review Proceedings
Outcome
Application for leave to appeal refused with costs, including the fees of two counsel.
Judges
Binns-Ward
Legal Topics
Tax Administration Act, Judicial Review, Leave to Appeal, Internal Remedies, Administrative Justice
Tax Law Civil Procedure Tax Administration Act Judicial Review Leave to Appeal Internal Remedies Administrative Justice

Case Brief

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Parties

Forge Packaging (Pty) Ltd

Applicant

The Commissioner for the South African Revenue Service

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Against Refusal to Entertain Review Proceedings

Legal Issues

  1. 1 Whether the applicant is entitled to challenge revised tax assessments by way of judicial review in the High Court without a direction under section 105 of the Tax Administration Act.
  2. 2 Whether the applicant has demonstrated reasonable prospects of success or other compelling reasons for leave to appeal.
  3. 3 Whether proceedings in the Tax Court inhibit the applicant's right to administrative justice under section 33 of the Constitution and PAJA.

Ratio Decidendi

The court held that the applicant failed to seek the required direction under section 105 of the Tax Administration Act to challenge the revised assessments by way of judicial review in the High Court. The applicant's reliance on PAJA was misplaced, as review proceedings in the High Court are only available exceptionally and not as of right. The Tax Court is competent to determine the legality of the assessments in the context of the pending appeal, and the applicant faces delay-related problems under PAJA that do not arise in the tax appeal. The discretion to grant a direction under section 105 was properly exercised, and there is no reasonable prospect that an appellate court would find...

Court Disposition

Application for leave to appeal refused with costs, including the fees of two counsel.

Orders

  • The application for leave to appeal is refused.
  • The applicant is ordered to pay the costs of the application, including the fees of two counsel.