South Africa Case Law

Commissioner, South African Revenue Service v Van der Merwe and Others (598/2015)

Commissioner, South African Revenue Service v Van der Merwe and Others (598/2015) [2016] ZASCA 138; 2017 (3) SA 34 (SCA); [2017] 2 All SA 335 (SCA); 79 SATC 283 (29 September 2016)

Court

Supreme Court of Appeal

Case number

598/2015

Judges

Lewis, Theron, Wallis, Petse, Dambuza

The Supreme Court of Appeal held that the Customs and Excise Act and the VAT Act do not create an embargo preventing liquidators from taking possession of company property prior to the payment of customs duty and VAT. The statutory lien granted to SARS under the Customs Act serves only as additional security and does not override the ranking of claims established by the Insolvency Act. The court found no express or implied provision in either the Customs Act or the Insolvency Act that excludes goods subject to SARS liens from being dealt with under insolvency law. The interpretation advanced…

Source excerpt

• Customs And Excise Act
• Statutory Liens
• Insolvency Priority
• Liquidation Of Company
• Value Added Tax
• Creditor Preferences