South Africa Case Law

Commissioner for the South African Revenue Service v Majestic Silver Trading 275 (Pty) Ltd and Others (B445/2023)

Commissioner for the South African Revenue Service v Majestic Silver Trading 275 (Pty) Ltd and Others (B445/2023) [2023] ZAGPPHC 1791 (11 October 2023)

Court

North Gauteng High Court, Pretoria

Case number

B445/2023

Judge

Davis

The court confirmed a tax preservation order against the trust and Mr Shabangu, discharged it against Mrs Shabangu, and authorized asset realization to secure tax debts.

• Tax Preservation Order
• Tax Debt Recovery
• Section 163 Tax Administration Act
• Business Rescue Proceedings
• Dissipation Of Assets
• Tax-preservation-order

Commissioner for the South African Revenue Service v Raphela and Others (2091/2021)

Commissioner for the South African Revenue Service v Raphela and Others (2091/2021) [2021] ZAGPPHC 191; 84 SATC 143 (29 March 2021)

Court

North Gauteng High Court, Pretoria

Case number

2091/2021

Judge

N Davis

The court found that the jurisdictional requirements for a preservation order under section 163 of the Tax Administration Act were met. The section empowers SARS to preserve assets held by persons other than the taxpayer, without requiring proof of collusion or intention to dissipate. The funds in Mrs Mdlulwa's accounts originated from the taxpayer and, if not preserved, would frustrate the collection of tax. The court rejected the argument that section 183 requirements applied, as SARS was not seeking to hold Mrs Mdlulwa jointly liable but to preserve assets. The alleged non-disclosures in t…

Source excerpt

• Tax Preservation Order
• Section 163 Tax Administration Act
• Asset Dissipation
• Ex Parte Application Requirements
• Foreign Exchange Control
• Costs Order

Commissioner for the South African Revenue Service v Badenhorst t/a SA Global Trading and/or Global Trading and Others, Commissioner of the South African Revenue Service v Vermaak and Others (51232/2013, 56971/2013)

Commissioner for the South African Revenue Service v Badenhorst t/a SA Global Trading and/or Global Trading and Others, Commissioner of the South African Revenue Service v Vermaak and Others (51232/2013, 56971/2013) [2015] ZAGPPHC 1085 (13 October 2015)

Court

North Gauteng High Court, Pretoria

Case number

51232/2013, 56971/2013

Judge

C Pretorius

The court found that section 163 of the Tax Administration Act is clear and unambiguous in permitting preservation orders against 'any person' holding assets derived from tax fraud, not only taxpayers. SARS established a prima facie case that Mr Sassin and Trojin Feeds knowingly participated in a VAT fraud scheme, received R65 million from dissipated VAT repayments, and that preservation of their assets is necessary to secure collection of tax owed by Mr Badenhorst, who is insolvent. The court rejected the respondents' constitutional challenge, holding that the deprivation of property was not…

Source excerpt

• Tax Preservation Order
• Vat Fraud
• Section 163 Tax Administration Act
• Constitutional Property Rights
• Prima Facie Evidence