Lifman and Another v Commissioner for the South African Revenue Service and Others (22820/2016) [2019] ZAWCHC 67; 81 SATC 289 (11 June 2019)

Lifman and Another v Commissioner for the South African Revenue Service and Others (22820/2016) [2019] ZAWCHC 67; 81 SATC 289 (11 June 2019)

The court held that the applicants failed to utilize the dispute resolution procedures provided in the Tax Administration Act, resulting in the tax assessments becoming final and conclusive. The alleged internal review by SARS was not a statutory process and did not entitle the applicants to a stay of execution. The applicants' complaints about treatment by SARS officials did not constitute grounds for review or exceptional circumstances justifying a stay. The court found no statutory basis for reconsideration or revision of the assessments outside the prescribed mechanisms. The application for a stay was therefore moot and amounted to an abuse of process. The court exercised its...

Citation
[2019] ZAWCHC 67
Parties
Applicant: Mark Roy Lifman; Applicant: The Close Corporations, Companies and Trusts listed in Schedule A hereto; Respondent: The Commissioner for the South African Revenue Service; Respondent: Keith Hendricks; Respondent: MacRobert Attorneys
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
11 June 2019
Case Number
22820/2016
Procedural Posture
Stay Application / Application for Stay of Execution Proceedings After Final Tax Assessments and Unsuccessful Prior Urgent Applications.
Outcome
Application dismissed with costs incurred after 12 February 2018; each party to bear its own costs incurred prior to 12 February 2018.
Judges
Baartman
Legal Topics
Tax Administration Act, Stay of Execution, Finality of Assessment, Dispute Resolution Procedure
Tax Law Civil Procedure Tax Administration Act Stay of Execution Finality of Assessment Dispute Resolution Procedure

Case Brief

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Parties

Mark Roy Lifman

Applicant

The Close Corporations, Companies and Trusts listed in Schedule A hereto

Applicant

The Commissioner for the South African Revenue Service

Respondent

Keith Hendricks

Respondent

MacRobert Attorneys

Respondent

Procedural Posture

Stay Application / Application for Stay of Execution Proceedings After Final Tax Assessments and Unsuccessful Prior Urgent Applications.

Legal Issues

  1. 1 Whether the applicants are entitled to a stay of execution of tax assessments pending an internal SARS review.
  2. 2 Whether SARS is empowered to reconsider or revise final tax assessments outside statutory dispute mechanisms.
  3. 3 Whether exceptional circumstances exist to justify a stay of execution.

Ratio Decidendi

The court held that the applicants failed to utilize the dispute resolution procedures provided in the Tax Administration Act, resulting in the tax assessments becoming final and conclusive. The alleged internal review by SARS was not a statutory process and did not entitle the applicants to a stay of execution. The applicants' complaints about treatment by SARS officials did not constitute grounds for review or exceptional circumstances justifying a stay. The court found no statutory basis for reconsideration or revision of the assessments outside the prescribed mechanisms. The application for a stay was therefore moot and amounted to an abuse of process. The court exercised its...

Court Disposition

Application dismissed with costs incurred after 12 February 2018; each party to bear its own costs incurred prior to 12 February 2018.

Orders

  • The application is dismissed with costs incurred after 12 February 2018.
  • Each party is to bear its own costs incurred prior to 12 February 2018.