South Africa: Tax Authorities

A South African High Court has ruled on the lawfulness of account freezing by banks based on fraud suspicions and affirmed SARS's authority to issue third-party notices under section 179 of the Tax Administration Act. The case arose after a close corporation fraudulently claimed a VAT refund of R3.28 million, transferred R900,000 to an individual's account, prompting the bank to freeze the account and SARS to pursue recovery through a third-party notice.

ENS's Tax in Brief Issue 176 delivers a comprehensive roundup of recent South African tax developments, including critical Tax Court and High Court judgments on VAT deductions, understatement penalties, and share block company taxation. The publication examines SARS's latest interpretation notes, regulatory amendments to export regulations and customs duties, and updates to compliance processes including the CRS Trade Testing Programme and employer reconciliation requirements.

The South African Revenue Service has launched a modernised Diesel Refund System on eFiling, fundamentally changing how businesses register for and manage diesel refund claims. This digital transformation introduces a standalone platform that replaces the VAT-linked model, requiring all existing users to reregister and establish electronic supplier relationships. The transition will occur in phases, with standalone claims functionality expected in 2027 while the current system continues operating in paralle

ENS presents issue 171 of its tax brief, covering recent South African tax developments including significant Supreme Court and Tax Court judgments on import duties, dividend stripping arrangements, and insurance contract deductions. The brief also details new SARS filing requirements, updated guides for the 2026 filing season, and important changes to customs procedures and VAT treatment of ambulance services.

ENS's Tax in Brief Issue 170 delivers a comprehensive snapshot of South Africa's evolving tax landscape, covering a landmark Constitutional Court ruling on VAT zero-rating for recycled gold, new draft regulations on domestic reverse charge mechanisms for valuable metals, and critical updates to PAYE reconciliation requirements. The bulletin also examines SARS's implementation of Global Minimum Tax returns, Filing Season 2026 enhancements, and significant customs and excise amendments including China's Zero-

South Africa's tax landscape is evolving with new border control requirements, refined R&D incentives, and recent SARS rulings on mining rehabilitation and equity structures. What do these developments mean for businesses operating across borders and claiming tax relief?

It is becoming increasingly unlikely that SARS will meet the collection targets required to achieve the additional R35 billion reflected in National Treasury's monthly publications.

The Tax Court has refused SARS's application to amend its rule 31 statement in the ETI test case that will determine the outcome of ETI disputes faced by over 400 employers. The judgment raises questions about who bears the cost when SARS causes delays.

In terms of South African tax law, retirement benefits received by South African tax residents from foreign retirement funds may be fully exempt from tax in certain circumstances.