ENS Tax In Brief

Below, please find issue 145 of ENS' Tax in brief, a snapshot of the latest tax developments in South Africa.

case law

• Supreme Court of Appeal | Henque 3935 CC t/a PQ Clothing Outlet v Commissioner for the South African Revenue Service (846/2023) [2025] ZASCA 56 (12 May 2025).
  • The taxpayer entered into business rescue, thereafter SARS raised additional tax assessments for prior periods and the SCA had to decide whether:
    • tax liabilities arising post-commencement of business rescue, but relating to periods prior to business rescue, are pre- or postcommencement debts, and whether these liabilities can be set off against VAT refunds due to the company after business rescue commenced.
  • The Court held that tax liabilities are created by the occurrence of the taxable event, not by the assessment in a future period. Thus, these debts are classified as pre-commencement claims.
  • Additionally, the SCA disallowed set-off of pre-commencement debts against post-commencement VAT refunds.
  • The appeal was thus upheld.
  • Find a link to the judgment here.

legislation and draft legislation

• Legal Counsel | Preparation of Legislation – Draft Documents for Public Comment
  • The Draft Tax Exemption Guide for Benefit Funds and Draft Guide to Section 18A Approval for Specific United Nations Entities have been published and are open for comment until 27 June 2025.
  • Find the draft guides here.

SARS publications

• Monthly Tax Digest for May 2025
  • Find the Monthly Tax Digest newsletter here.
• Easier Submission for Donations Tax and Withholding Tax on Royalties
  • Donations Tax and Withholding Tax on Royalties declarations can now be submitted online through the SARS Online Query System (SOQS).
• SNME Connect Issue 11 – May 2025 Edition
  • Find the latest edition of SNME Connect here.

customs and excise

• Customs | Registration, Licensing and Accreditation
  • The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to include details of the newly approved De-grouping Facilities.
  • Find the updated facility code list here.
• The tariffs amendments notices scheduled for publication in the Government Gazette, relate to the following amendments:
  • Part 5A of Schedule No. 1, by the substitution of the rate of fuel levy for item 195.20.03, to give effect to the Budget proposals announced by the Minister of Finance on 12 March 2025; and
  • Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99, to reduce the rate of customs duty on sugar from 377.35c/kg to 282.85c/kg in terms of the existing variable tariff formula (ITAC Minute 17/2024).
  • Find the notices 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.