South Africa Case Law

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)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

5009/2023P

Judge

Olsen

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

Minister of Human Settlements and Another v Mminathoko Trading 117 CC (3803/2021)

Minister of Human Settlements and Another v Mminathoko Trading 117 CC (3803/2021) [2023] ZAFSHC 282 (18 July 2023)

Court

Free State High Court, Bloemfontein

Case number

3803/2021

Judge

Naidoo

The court found that the applicants' default was not wilful, as there was ongoing communication and requests for extensions, and the respondent did not discharge the onus of proving wilful default. Although the explanation for the delay was not comprehensive, the court exercised its discretion to consider the merits and prospects of success. The applicants presented an arguable defence that payment to SARS under section 179 of the Tax Administration Act extinguished their liability to the respondent. The interests of justice require that the issues be fully ventilated at trial, and the applic…

Source excerpt

• Rescission Of Judgment
• Default Judgment
• Tax Administration Act Section 179
• Wilful Default
• Misjoinder

Williams v Minister of Police and Others (2560/2016)

Williams v Minister of Police and Others (2560/2016) [2017] ZAWCHC 40 (1 February 2017)

Court

Western Cape High Court, Cape Town

Case number

2560/2016

Judge

Holderness

The court dismissed an application to recover seized funds, holding that SARS lawfully obtained the money under section 179 of the Tax Administration Act.

• Tax Administration Act Section 179
• Seizure Of Funds
• Notice Of Objection
• Urgency
• Costs Order
• Tax-administration-act-section-179