Below, please find issue 139 of ENS' Tax in brief, a snapshot of the latest tax developments in South Africa.
case law
- High Court of South Africa (Gauteng Division, Pretoria)
| C:SARS v ZCMT in re: Mpisane v ZCMT & C:SARS
(14886/16)
- Whether a final winding-up order should be granted in respect of the respondent (ZCMT), taking into account the provisions of the Tax Administration Act, 2011 (“TAA”).
- The court considered, inter alia:
- section 346 of the Companies Act, 2008.
- section 177(3) of the TAA.
- The court confirmed what is required by the South African Revenue Service (“SARS”) when bringing an application to place a company into liquidation where there is an assessment under objection and/or appeal.
- Find a copy of this judgment here.
- High Court of South Africa (Gauteng Division, Pretoria)
| Full-bench appeal from the Tax Court | C:SARS v The Executor
of the Estate Late Ndlovu (A395/2016)
- The taxpayer failed to declare gain in tax return and SARS imposed 10% penalty under section 76(1)(b) of the Income Tax Act, 1962 plus interest under section 89quat(2) of the Income Tax Act.
- The Tax Court reduced the penalty to nil and permitted the taxpayer to appeal against the imposition of section 89quat interest despite the taxpayer raising this as a ground for the first time on appeal.
- The High Court considered:
- section 76(1)(b) of the Income Tax Act.
- section 89quat(2) of the Income Tax Act.
- rule 7(2) of the Tax Court rules.
- The High Court reinstated the 10% penalty and refused to allow the appeal against section 89quat interest; and in any event found that the taxpayer had not shown reasonable grounds for the interest to be waived.
- The appeal was upheld with costs.
- Find a copy of this judgment here.
SARS publications
- Monthly Tax Digest for February 2025
- Find the Monthly Tax Digest newsletter here.
- Multilateral Instrument ("MLI")
- Synthesized texts of the MLI for the following countries has
been made available:
- Belgium;
- China (People's Republic of);
- Egypt;
- Russia;
- Spain; and
- United Kingdom
- Find the synthesised texts here.
- Synthesized texts of the MLI for the following countries has
been made available:
- Updated Guide to Bulk and Additional Payments on eFiling
- There is currently no requirement to validate the Payment Reference Number ("PRN") when a Comma Separated Values ("CSV") file is submitted. A new rule has been added to address invalid PRNs that are submitted for Admin Penalties via the Bulk and Additional Payments on eFiling.
- Find the Guide to Bulk and Additional Payments on eFiling here.
- Media release: Greyvensteyn v Commissioner for SARS and
Others | judgment (to be published and court confirmed)
reaffirms the constitutionality of the Tax Administration Act
- Judgment was delivered on 12 February 2025 in the matter between Greyvensteyn v Commissioner for SARS and Others.
- The Applicant, Andries Greyvensteyn, challenged the constitutionality of sections 180, 184(2), and 186(3) of the Tax Administration Act 28 of 2011 which deal respectively with the liability of financial management for tax debts, the recovery thereof from other persons and the compulsory repatriation of foreign assets of a taxpayer. The provisions were challenged on the basis that they violated his constitutional rights, specifically section 34 (right to access to court) and sections 21 and 22 (rights to freedom of movement and to choose a trade, occupation, or profession freely).
- The court found that the limitations imposed by section 186(3) on Greyvensteyn' s rights were reasonable and justifiable in an open and democratic society, given the importance of tax collection for public interest. The court upheld the constitutionality of sections 180, 184(2), and 186(3).
- Find more information here.
- SARS has launched e@syFile™ Employer – version 8.0.
The platform has been redesigned to enhance your filing experience.
Version 8.0 will replace all previous versions of the software,
effective 1 March 2025.
- Taxpayers are encouraged to download version 8.0 timeously to familiarise with the new features.
- Find more information here
- SMEE Connect Edition 10
- Small, medium and micro enterprise ("SMME") contributions are integral to the nation's economic growth and stability. SARS wants to make it easier for SMMEs to fulfil their tax obligations.
- Find more information here
- Reportable Arrangement Submissions now available on eFiling:
- SARS is introducing the option to submit Reportable Arrangements via eFiling, following requests for enhanced security and efficiency. Previously submitted manually via email, these submissions can now be made under the Services section, Additional Services on eFiling.
- The submission process remains unchanged, with the RA01 form and supporting documentation still required. Both eFiling and email submissions will run parallel until 31 May 2025, after which email submissions will no longer be accepted.
- This move is part of SARS' ongoing efforts to modernise systems and improve compliance processes, providing taxpayers with a more secure and streamlined way to meet their obligations.
- Find more informationhere
- Suspension of Payment for Trusts
- SARS is modernising the Trust suspension of payment ("SOP") process from manual to digital on eFiling, making it easier and more efficient for Trusts and their representatives to manage their tax obligations. This change aligns with SARS' commitment to provide modern, digital services that simplify compliance. Taxpayers and tax practitioners are able to submit requests for SOP on Section 95(1)(c) and disputed Trust debt, from 17 February 2025 onwards.
- Find more information here.
customs and excise
- Tariff amendments 2025
- Publication details for tariff amendments notice R.5854, as published in Government Gazette 52084 of 14 February 2025, are now available.
- This notice is regarding amendments to Part 1 of Schedule No. 1, by the insertion of Additional Notes 2 and 3 to Chapter 30 as well as the insertion of tariff subheadings 3004.90.20 and 3004.90.30 in order to provide clarity on where supplements, herbal or homeopathic preparations should be classified
- Find the tariff amendments notice R.5854 here.
- Amendment to Schedule 1, by the substitution of Appendix IV to
Annex 2 on Rules of Origin in the General Notes, to facilitate ease
of preferential trade among the implementing countries under the
African Continental Free Trade Area
("AfCFTA") Agreement.
- Find the Amendments here.
- Amendment to Schedule No. 1, by the substitution of paragraph 1
of General Note O, to include Morocco, Burundi and Uganda as part
of the State Parties in the African Continental Free Trade Area
("AfCFTA") Agreement
- Find the Amendments here.
- Amendment to Part 1 of Schedule No. 2, by the insertion of item
204.05/2102.10/01.06, in order to impose anti-dumping duty on
imports of active yeast imported from or originating from the
Republic of Zimbabwe (ITAC Report 741).
- Find the Amendments here.
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.
