South Africa Case Law

Lion Match Company (Pty) Ltd v Commissioner, South African Revenue Service (1047/2023; 1067/2023)

Lion Match Company (Pty) Ltd v Commissioner, South African Revenue Service (1047/2023; 1067/2023) [2025] ZASCA 112 (28 July 2025)

Court

Supreme Court of Appeal

Case number

1047/2023; 1067/2023

Judges

Mokgohloa, Meyer, Matojane, Keightley, Norman

The Supreme Court of Appeal held that Lion Match failed to establish exceptional circumstances warranting reconsideration of the refusal of special leave to appeal. The application for postponement was not made timeously, and the explanation provided was vague and unsatisfactory. The withdrawal of legal representatives did not automatically justify a postponement, especially where the applicant failed to act promptly or provide adequate details. The Tax Court correctly refused the postponement and proceeded in the absence of the appellant, as permitted by rule 44(7) of the Tax Court Rules. Th…

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• Tax Administration Act
• Postponement Principles
• Capital Gains Tax
• Tax Court Rules
• Judicial Discretion
• Costs Orders

Trust Taxpayer v Commissioner for the South African Revenue Service (IT 45673)

Trust Taxpayer v Commissioner for the South African Revenue Service (IT 45673) [2024] ZATC 15 (17 July 2024)

Court

Tax Court

Case number

IT 45673

Judges

Kekana, Eric Mphumbude, Sebueng Mthembu

The Tax Court dismissed a taxpayer trust’s appeal, upholding SARS assessments on rental income, capital gains base cost, penalties, interest, and costs.

• Income Tax Assessment
• Capital Gains Tax
• Understatement Penalty
• Onus Of Proof
• Interest On Tax
• Costs In Tax Appeals

Christoffel Hendrik Wiese and Others v CSARS (1307/2022)

Christoffel Hendrik Wiese and Others v CSARS (1307/2022) [2024] ZASCA 111; [2024] 4 All SA 108 (SCA); 2025 (1) SA 127 (SCA); 87 SATC 14 (12 July 2024)

Court

Supreme Court of Appeal

Case number

1307/2022

Judges

Mocumie, Mothle, Goosen, Tolmay, Seegobin

The Supreme Court of Appeal held that the term 'tax debt' in section 183 of the Tax Administration Act refers to the taxpayer's liability to pay tax, which arises by operation of law upon the occurrence of a taxable event, regardless of whether an assessment has been issued. The Court found that requiring an assessed debt at the time of asset dissipation would defeat the purpose of section 183 and allow third parties to evade liability. The Court further held that the transcript of evidence given at an inquiry under section 50 of the Act is admissible in subsequent proceedings, as section 56(…

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• Tax Administration Act Section 183
• Third Party Liability For Tax Debt
• Admissibility Of Inquiry Transcript
• Assessment And Tax Debt
• Secondary Tax On Companies
• Capital Gains Tax

Agenbach N.O and Others v Commissioner for South African Revenue Service (15703/22)

Agenbach N.O and Others v Commissioner for South African Revenue Service (15703/22) [2023] ZAGPPHC 2068; 86 SATC 125 (23 October 2023)

Court

North Gauteng High Court, Pretoria

Case number

15703/22

Judge

JG Cilliers

The High Court dismissed a review of SARS tax assessments, holding that the trust had not exhausted Tax Court remedies and showed no exceptional circumstances.

• Promotion Of Administrative Justice Act
• Tax Administration Act
• Exhaustion Of Internal Remedies
• Exceptional Circumstances
• Capital Gains Tax
• Judicial Review

Tall v Commissioner for the South African Revenue Service (IT 24870; IT 25162; IT 25166)

Tall v Commissioner for the South African Revenue Service (IT 24870; IT 25162; IT 25166) [2023] ZATC 12; 86 SATC 398 (6 July 2023)

Court

Tax Court

Case number

IT 24870; IT 25162; IT 25166

Judge

BAM

The court found that Tall did not object to the capital amount in the 2012 year of assessment, as confirmed by correspondence and the factual matrix. The rules and case law make it clear that a taxpayer may not appeal on a new ground against a part or amount of the assessment not objected to. Tall's attempt to rely on grounds pleaded for other years in respect of the 2012 assessment is impermissible. The objection to prescription does not constitute an objection to the capital amount or the whole assessment. Furthermore, the assessment for the 2012 year has become final in terms of section 10…

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• Tax Administration Act
• Objection And Appeal Procedure
• Finality Of Assessment
• Prescription
• Capital Gains Tax
• Understatement Penalty

Lance Dickson Construction CC v Commissioner for the South African Revenue Service (A211/2021)

Lance Dickson Construction CC v Commissioner for the South African Revenue Service (A211/2021) [2023] ZAWCHC 12; 84 SATC 209 (31 January 2023)

Court

Western Cape High Court, Cape Town

Case number

A211/2021

Judges

P.L. Goliath, P.A.L. Gamble, D.S. Kusevitsky

SARS imposed a 25% understatement penalty under the category of 'reasonable care not taken in completing return' but failed to prove the factual basis for this category. The only witness for SARS conceded under cross-examination that the wrong behavioural category was applied and that the taxpayer's position was reasonable. The Tax Court erred in confirming the penalty despite SARS not discharging its burden of proof for the pleaded category. The court held that SARS is strictly bound by its pleaded case and cannot rely on a different category without amending its pleadings and issuing a revi…

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• Capital Gains Tax
• Understatement Penalty
• Tax Administration Act
• Burden Of Proof
• Pleading Requirements

CSARS v The Thistle Trust (516/2021)

CSARS v The Thistle Trust (516/2021) [2022] ZASCA 153; 2023 (2) SA 120 (SCA); 85 SATC 347 (7 November 2022)

Court

Supreme Court of Appeal

Case number

516/2021

Judges

Dambuza, Van der Merwe, Hughes, Goosen, Daffue

The Supreme Court of Appeal held that trust capital gains were taxable in the Thistle Trust’s hands, but set aside the understatement penalty.

• Capital Gains Tax
• Trust Taxation
• Understatement Penalty
• Interest On Tax
• Eighth Schedule Interpretation
• Capital-gains-tax

LDC Taxpayer v Commissioner for the South African Revenue Service (IT 24888)

LDC Taxpayer v Commissioner for the South African Revenue Service (IT 24888) [2021] ZATC 6; 84 SATC 129 (18 June 2021)

Court

Tax Court

Case number

IT 24888

Judges

J Cloete, P Surtees, Q Joseph

The court found that the omission of the capital gain from the appellant's 2017 income tax return constituted an understatement as defined in section 221 of the Tax Administration Act, resulting in prejudice to SARS and the fiscus through delayed tax collection and resource allocation for audit. The evidence established that the capital gain accrued in the 2017 year of assessment, and the appellant's failure to disclose it was an omission. SARS was entitled to impose an understatement penalty. However, SARS incorrectly categorised the behaviour as 'reasonable care not taken in completing a re…

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• Understatement Penalty
• Reasonable Care In Completing Return
• Capital Gains Tax
• Prejudice To Fiscus
• Timing Of Accrual
• Tax Administration Act

JMN v The Commissioner for the South African Revenue Service (A3096/2019; 14001)

JMN v The Commissioner for the South African Revenue Service (A3096/2019; 14001) [2021] ZAGPJHC 167 (30 April 2021)

Court

South Gauteng High Court, Johannesburg

Case number

A3096/2019; 14001

Judges

EF Dippenaar, M Senyatsi, B Wanless

High Court tax appeal about valuing unlisted shares for CGT and donations tax, the classification of mineral resources, and a disputed consultancy liability.

• Capital Gains Tax
• Donations Tax
• Valuation Of Unlisted Shares
• Tax Assessment
• Contingent Liability
• Costs Order

B v Commissioner for the South African Revenue Service (13395)

B v Commissioner for the South African Revenue Service (13395) [2021] ZATC 5; 83 SATC 545 (23 April 2021)

Court

Tax Court

Case number

13395

Judges

L R Adams, F Venter, I Nkama

Tax Court CGT appeal on sale of shares: proceeds accrued in 2009, base cost derived from amnesty valuation, and the assessment was altered accordingly.

• Capital Gains Tax
• Base Cost Determination
• Exchange Control Amnesty
• Assessment Alteration
• Additional Tax Penalty
• Interest On Underpayment