JBSA Props (Pty) Ltd and Another v Commissioner for the South African Revenue Services and Others (5009/2023P)
JBSA Props (Pty) Ltd and Another v Commissioner for the South African Revenue Services and Others (5009/2023P) [2025] ZAKZPHC 3; 2025 (3) SA 510 (KZP) (10 January 2025)
The court held that section 154(1) of the Companies Act requires a creditor to accede to the compromise of a post-commencement debt for it to be discharged under a business rescue plan. SARS did not accede to the compromise of its post-commencement VAT claim, either by overt act or written agreement, nor did it participate in the formulation or approval of the plan. The statutory process for compromising a tax debt under the Tax Administration Act was not followed. The absence of SARS from the creditors' meeting did not amount to acquiescence or consent. Accordingly, the business rescue plan…
Source excerpt
- Business Rescue
- Compromise Of Tax Debt
- Vat Liability
- Companies Act Section 152
- Companies Act Section 154
- Tax Administration Act Section 179