Gold Kid Trading CC v Commissioner for the South African Revenue Services (2016/31842) [2018] ZAGPJHC 710 (19 July 2018)

Gold Kid Trading CC v Commissioner for the South African Revenue Services (2016/31842) [2018] ZAGPJHC 710 (19 July 2018)

The High Court confirmed its jurisdiction to entertain review applications against SARS decisions, as the powers of the Tax Court do not oust ordinary judicial review. However, the court found that Gold Kid Trading CC had failed to exhaust internal remedies as required by section 7(2) of PAJA, since an appeal against the SARS assessment was pending and no exceptional circumstances or prejudice were shown to justify bypassing the appeal process. The previous urgent order did not preclude SARS from conducting further audits or assessments, as it did not address the merits of the VAT assessment but merely compelled payment based on procedural compliance. Consequently, the application for...

Citation
[2018] ZAGPJHC 710
Parties
Applicant: Gold Kid Trading CC; Respondent: Commissioner for the South African Revenue Services
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
19 July 2018
Case Number
2016/31842
Procedural Posture
Review Application / Application to Review and Set Aside SARS VAT Assessment; Preliminary Point on Exhaustion of Remedies
Outcome
Application struck from the roll with costs due to failure to exhaust internal remedies.
Judges
E Molahlehi
Legal Topics
Vat Refund Dispute, Exhaustion of Internal Remedies, Judicial Review, Tax Assessment, Promotion of Administrative Justice Act, Res Judicata
Tax Law Administrative Law Civil Procedure Vat Refund Dispute Exhaustion of Internal Remedies Judicial Review Tax Assessment Promotion of Administrative Justice Act +1 more

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Parties

Gold Kid Trading CC

Applicant

Commissioner for the South African Revenue Services

Respondent

Procedural Posture

Review Application / Application to Review and Set Aside SARS VAT Assessment; Preliminary Point on Exhaustion of Remedies

Legal Issues

  1. 1 Whether the High Court has jurisdiction to review SARS's VAT assessment decision despite the powers of the Tax Court.
  2. 2 Whether SARS's reversal of VAT refunds and assessments was rational, reasonable, and lawful.
  3. 3 Whether Gold Kid Trading CC was required to exhaust internal remedies before approaching the High Court for review.

Ratio Decidendi

The High Court confirmed its jurisdiction to entertain review applications against SARS decisions, as the powers of the Tax Court do not oust ordinary judicial review. However, the court found that Gold Kid Trading CC had failed to exhaust internal remedies as required by section 7(2) of PAJA, since an appeal against the SARS assessment was pending and no exceptional circumstances or prejudice were shown to justify bypassing the appeal process. The previous urgent order did not preclude SARS from conducting further audits or assessments, as it did not address the merits of the VAT assessment but merely compelled payment based on procedural compliance. Consequently, the application for...

Court Disposition

Application struck from the roll with costs due to failure to exhaust internal remedies.

Orders

  • The applicant's application is struck from the roll with costs.