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Below, please find issue 171 of ENS’ tax in brief, a snapshot of the latest tax developments in South Africa.
Case law
- Supreme Court of Appeal (“SCA”) | QI Logistics (Pty) Ltd v CSARS (180/2026) [2026] ZSCA 96
- QI Logistics, a licensed clearing agent, appealed against the decision of the Gauteng Division of the High Court that it was liable for import duties and levies arising from imported fuel.
- The issue on appeal before the SCA was whether the decision of Commissioner for the South African Revenue Service (“Commissioner” or SARS’”) to hold QI liable for import duties and to demand an amount in lieu of forfeiture were rational and procedurally fair.
- SARS demanded approximately R35 million from QI in respect of fuel consignments lacking border endorsements, despite QI submitting extensive “acquittal documents” (i.e. supporting documents that demonstrated the entry and exit of the goods) and QI having never received reasons for SARS’ decision which it had requested.
- The SCA upheld the appeal, set aside both decisions for procedural irrationality (and unfairness on the forfeiture demand), and remitted the matter to SARS with costs.
- Find a copy of the judgment here.
- Tax Court | Company AF (Pty) Ltd and Others v CSARS (IT 76725; IT 76750; IT 76751; IT 76752; IT 76753; IT 76754; IT 76755) [2026] ZATC 6
- This judgment concerned the application of the general anti-avoidance rules (GAAR) in Part IIA of the Income Tax, Act 58 of 1962 (“ITA”), to a dividend stripping arrangement used in connection with the sale of shares in a self- storage business.
- Find the ENS publication on this judgment here.
- High Court | CSARS v Meiring Citrus (Pty) Ltd (A161/2025 IT 46080)
- This judgment concerned an appeal by the Commissioner against a judgment of the Tax Court.
- The main issues for determination were whether a self-structured insurance arrangement constituted a valid insurance contract for purposes of deductions of the relevant premiums under section 11(a) of ITA; the application of the period of limitation for assessments under sections 99(1)(a) and 99(2)(a) of the Tax Administration Act, 2011 (“TAA”); and the imposition of understatement penalties.
- The High Court upheld the appeal, finding that a traditional insurance contract requires a spreading of risk, applying the economic theory of insurance. The taxpayer’s self-structured insurance arrangement did not constitute insurance at all, and the deduction of the premiums was not allowed under section 11(a) of the ITA.
- The court also held that assessments were not time-barred under section 99(1)(a) and 99(2)(a) of the TAA, and the imposition of understatement penalties was confirmed.
- Find a copy of the judgment here.
Legislation and draft legislation
- Income Tax Act, 1962 | Draft Binding General Ruling (Income Tax) published for comment regarding filing date of a return
- SARS has published a Draft Binding General Ruling for public comment regarding the filing date of a return in case of a company’s change in financial year and year of assessment.
- Due date for comment: 31 July 2026.
- Find the draft BGR here.
- Income Tax Act, 1962 | Draft Guide to the Taxation of Crypto Assets
- SARS published a draft guide for public comment on the taxation of crypto assets. The guide considers select provisions of the ITA relevant to crypto assets.
- Due date for comment: 31 August 2026.
- Find the draft guide here.
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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.
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