Case: Commissioner for the South African Revenue Service v Bullion Star (Pty) Ltd [2026] ZASCA 76 Court: Supreme Court of Appeal of South Africa Case number: 894/2024 Citation: [2026] ZASCA 76 Judgment date: 22 May 2026 Majority judgment: Hughes JA, with Molefe and Koen JJA concurring Dissenting judgment: Opperman AJA, with Nuku AJA concurring Tax: Tax Administration / Value-Added Tax Legislation: Sections 59, 60 and 66 of the Tax Administration Act 28 of 2011 Issue: Whether an overbroad SARS search-and-seizure warrant should have been set aside in its entirety, whether the excessive portions could be severed after execution of the warrant, and whether SARS could continue using information seized under the unlawful warrant. 1. Overview The Supreme Court of Appeal’s decision in Commissioner for the South African Revenue Service v Bullion Star (Pty) Ltd is an important judgment on the limits of SARS’s search-and-seizure powers under the Tax Administration Act. Read More …
Author: Nyasha Musviba
Constitutional Court delivers landmark ruling on South Africas GAAR Absa Bank Ltd and Another v CSARS
Case: Absa Bank Ltd and Another v Commissioner for the South African Revenue Service Court: Constitutional Court of South Africa Case number: CCT 72/24 Citation: [2026] ZACC 15 Judgment date: 22 April 2026 Majority judgment: Majiedt J Dissenting judgment: Rogers J Tax: Income Tax Legislation: Sections 80A to 80L of the Income Tax Act 58 of 1962 Issue: Application of the General Anti-Avoidance Rules (GAAR), including what constitutes an impermissible avoidance arrangement, who qualifies as a party to such an arrangement, and whether the taxpayer assessed must personally have obtained the tax benefit. 1. Overview The Constitutional Court’s decision in Absa Bank Ltd and Another v Commissioner for the South African Revenue Service is one of the most significant South African tax avoidance judgments in recent years. The case concerned the General Anti-Avoidance Rules contained in sections 80A to 80L of the Income Tax Act 58 of 1962. Importantly, the Read More …
Constitutional Court confirms that recycled gold does not qualify for VAT zero-rating Lueven Metals (Pty) Ltd v CSARS
Case: Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service Court: Constitutional Court of South Africa Case number: CCT 320/23 Citation: [2026] ZACC 24 Judgment date: 23 June 2026 Judge: Theron J (unanimous Court) Tax: Value-Added Tax Legislation: Section 11(1)(f) of the Value-Added Tax Act 89 of 1991 Issue: Whether supplies of refined gold derived from second-hand or recycled gold qualify for VAT at the zero rate. 1. Overview The Constitutional Court’s decision in Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service is an important judgment on the interpretation of the zero-rating provisions contained in section 11(1)(f) of the Value-Added Tax Act 89 of 1991. At the centre of the dispute was a deceptively simple question: Can gold that was previously manufactured into items such as jewellery, subsequently recycled and refined back into qualifying gold bars, be supplied to a prescribed purchaser at Read More …
Your interest-free loan to a foreign trust can now be subject to both donations tax and transfer pricing adjustments: The interplay between section 7C and transfer pricing rules
Many South Africans use foreign trust structures for tax-efficient asset protection and estate planning. Consequently, the recent amendment to section 7C of the Income Tax Act 58 of 1962 (ITA), in the context of low or interest-free loans to a foreign trust by a connected person, is critical to ensuring that such trusts achieve their intended objectives without contravening the trust anti-avoidance provisions.
Objecting to an additional assessment: When playing possum isnt an option
When a taxpayer is aggrieved by an assessment raised by the South African Revenue Service (SARS), the first step in disputing this is to file an objection under section 104 of the Tax Administration Act 28 of 2011 (TAA). In the recent case ofDr X and Dr X Inc v Commissioner, SARS(52/2023), the Tax Court dealt with the importance of complying with the requirements of Rule 7(2)(b) of the dispute resolution rules promulgated under section 103 of the TAA (Rules) in order for an objection to be valid. The Tax Court also clarified some of these prescribed requirements.
Better late, or better never? Government wants to tighten rules on taxpayers incurring losses
For a very long time, residents have been required to obtain prior approval from the Financial Surveillance Department of the South African Reserve Bank (SARB) when making payment of royalties or fees to related non-residents.
Better late, or better never? Government wants to tighten rules on taxpayers incurring losses
In the dynamic world of corporate taxation, section 42 of the Income Tax Act 58 of 1962 (ITA) stands as a beacon for persons looking to restructure without immediate tax consequences. This provision provides a mechanism for tax-neutral asset-for-share transactions in terms of which a person can transfer an asset to a resident company in exchange for shares in that company without immediate tax consequences, provided certain conditions are met.
When a grant isnt free: Understanding the tax treatment of government grants under section 12P
Government grants play an important role in supporting South African businesses, particularly in sectors targeted for development or transformation. However, the assumption that such grants are automatically tax free is incorrect. In terms of the Income Tax Act 58 of 1962 (Act), government grants could be included in gross income unless a specific exemption applies or they are of a capital nature.
Game-changing ruling: Companies in business rescue just scored a major victory over SARS
In a landmark decision delivered on 12 May 2025, the Supreme Court of Appeal (SCA) ruled that the South African Revenue Service (SARS) cannot apply set-off of value-added tax (VAT) refunds resulting from trading activities post business rescue, against tax debts that were incurred before the commencement of business rescue proceedings. This ruling came inHenque 3935 CC t/a PQ Clothing Outlet v Commissioner for the South African Revenue Service(846/2023) [2025] ZASCA 56, a case that has significant implications for companies undergoing business rescue.
Court or nought? The status of the Tax Court revisited
Considerable uncertainty has arisen about the status of the Tax Court. Despite the name and the nature of its presiding officers, unlike other specialist courts established by Parliament to consider matters in specific areas of law, recent judgments have commented that the Tax Court is currently neither a court of law nor a judicial tribunal, but rather functions as an administrative tribunal. In light of the debatable justification for this state of affairs, this article posits that it may be worth reconsidering the composition and function of the Tax Court.