Siphayi and Another v Commissioner for SARS and Others (34975/2019) [2019] ZAGPJHC 455; 82 SATC 248 (25 October 2019)

Siphayi and Another v Commissioner for SARS and Others (34975/2019) [2019] ZAGPJHC 455; 82 SATC 248 (25 October 2019)

The court found that SARS failed to establish that the first applicant received the required statutory notices before deducting funds from his personal bank account for the second applicant's tax debt. The evidence regarding service of notices by email and registered post was inconclusive, and the applicant's denial of receipt was not seriously challenged. Given the urgency and the potential prejudice to the first applicant's business, interim relief was warranted. SARS was interdicted from further deductions pending proper service of notices and further proceedings.

Citation
[2019] ZAGPJHC 455
Parties
Applicant: Kenneth Siphayi; Applicant: Kenny Bricks CC; Respondent: Commissioner for SARS; Respondent: South African Revenue Service; Respondent: Pearl Moodley
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
25 October 2019
Case Number
34975/2019
Procedural Posture
Urgent Application / Interim Relief Pending Final Determination
Outcome
Interim interdict granted; SARS restrained from further deductions pending proper notice.
Judges
WHG van der Linde
Legal Topics
Tax Administration Act, Personal Liability of Representative Taxpayer, Notice Requirements, Urgent Interdict, Third Party Payment, Service of Documents
Tax Law Civil Procedure Tax Administration Act Personal Liability of Representative Taxpayer Notice Requirements Urgent Interdict Third Party Payment Service of Documents

Case Brief

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Parties

Kenneth Siphayi

Applicant

Kenny Bricks CC

Applicant

Commissioner for SARS

Respondent

South African Revenue Service

Respondent

Pearl Moodley

Respondent

Procedural Posture

Urgent Application / Interim Relief Pending Final Determination

Legal Issues

  1. 1 Whether SARS lawfully deducted funds from the first applicant's personal bank account for the tax debt of the second applicant.
  2. 2 Whether SARS complied with statutory notice requirements before holding the first applicant personally liable.
  3. 3 Whether the urgency of the application is justified given the commercial impact on the first applicant.

Ratio Decidendi

The court found that SARS failed to establish that the first applicant received the required statutory notices before deducting funds from his personal bank account for the second applicant's tax debt. The evidence regarding service of notices by email and registered post was inconclusive, and the applicant's denial of receipt was not seriously challenged. Given the urgency and the potential prejudice to the first applicant's business, interim relief was warranted. SARS was interdicted from further deductions pending proper service of notices and further proceedings.

Court Disposition

Interim interdict granted; SARS restrained from further deductions pending proper notice.

Orders

  • Pending re-enrolment, the first and second respondents are interdicted from deducting monies from the first applicant’s bank account in terms of section 184 of the Tax Administration Act 28 of 2011.
  • The first and second respondents are directed to resend notices of intention to hold the first applicant liable for the tax debts of the second applicant at specified email addresses.