Below, please find issue 81 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.

case law

  • The High Court of South Africa, Western Cape Division, Cape Town Ι Tunica Trading 59 (Proprietary) Limited v Commissioner, South African Revenue Service [2022] ZAWCHC 52 Ι Case NO. A145/2021 (21 April 2022)
    • The underlying dispute of this appeal concerns the refusal by the Commissioner of the South African Revenue Service ("SARS") to pay a claim lodged by Tunica Trading 59 (Proprietary) Limited in terms of section 75(1) of the Customs and Excise Act, 1964 for a refund of the excise duty and fuel levy which was paid in respect of a consignment of fuel purportedly exported by it.
    • SARS addressed a letter to Tunica in which it indicated that it intended to reject the refund application, on the grounds that the fuel had not been purchased from a licensee of a customs and excise manufacturing warehouse, but had instead been purchased from what SARS termed "an intermediary".
    • On 28 September 2015, SARS' internal Administrative Appeal Committee disallowed an internal administrative appeal by Tunica against such refusal (the "September 2015 decision").
    • The State Attorney acting for SARS addressed a letter to Tunica's attorneys, from which it appeared that SARS had taken the view that the September 2015 decision constitutes a tariff determination within the meaning of section 47(9)(a) of the Customs and Excise Act.
    • Tunica, out of caution, and in order to avoid unnecessary delays in the determination of this dispute, sought leave to amend its notice of motion in the review application to include alternative relief in the event that the court found that the September 2015 decision was a tariff determination, and that section 47(9)(e) of the Customs and Excise Act ousts the right of an aggrieved party to review the decision.
    • The court considered the following provisions of the Customs and Excise Act:
      • section 64F;
      • section 96(1)(a);
      • sections 77A to H; and
      • section 47(9)(f)
    • In addition to the above, the court considered the following:
      • section 6 of Promotion of Administrative Justice Act, 2000 ("PAJA"); and
      • section 172 of the Constitution of the Republic of South Africa, 1996
    • The court held that SARS did not, at any stage prior to the present litigation being underway, inform Tunica that its redress was an internal appeal in terms of section 47(9)(e) of the Customs and Excise Act.
    • The issue that there is no right of review in terms of section 6 of PAJA, when an appeal is available in terms of section 47(9)(e) of the Customs and Excise Act, need not be considered by this court because the remedy in section 47(9)(e) was not available to Tunica.
    • The court held that Tunica has indeed shown that the fuel had been purchased from a licensee of a customs and excise manufacturing warehouse.
    • Find a copy of the judgment here.

legislation and draft legislation

  • National legislation | Revised Draft Bill
    • The 2022 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2022 Draft Rates Bill) includes:
      • the tax rate and threshold adjustments that were announced in the 2022 Budget;
      • changes to the personal income tax brackets and rebates; and
      • the employment tax and excise duties on alcohol and tobacco, amongst others.
    • Find a copy of the revised draft bill here.

SARS publications

  • Transfer duty applications
    • Did you know you only have seven days to upload your supporting documents after the final request letter was issued?
    • Find more information here.
  • Tender | Document Conversion from PDF to HTML
    • This RFI document sets out the business requirements that SARS has for a PDF to HTML document conversion, which must be taken into account by the Bidder in compiling a proposal.
    • Find more information here.
  • Tax Workshops
    • Tax Workshop schedule: Bloemfontein branch.
    • Find a copy of the schedule here.
  • Tender | Appointment of a Panel for Design and Engineering Consultants for the Built Environment.
    • Find the relevant documentation here.
  • Mobile Tax Units
    • SARS has published the Western Cape schedules for Mobile Tax Units.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.