Tag: Richan Schwellnus

Two recent High Court judgments, in which the powers of the South African Revenue Service (SARS) came under close scrutiny, have delivered a clear message. Despite the wide powers granted under the Tax Administration Act, No. 28 of 2011 (TAA), those powers remain discretionary. However, they are not unfettered. This marks an important instance of court scrutiny of SARS’ powers.

The National Treasury’s long-awaited 2026 tax amendment Acts have now been promulgated. These 2026 Tax Amendments introduce a focused set of changes to South Africa’s Value Added Tax (VAT) and Income Tax frameworks. As a result, these amendments carry immediate practical consequences for taxpayers, employers and investors.

Budget Day 2026 may have lacked drama, but beneath the surface it delivered a series of quietly positive tax developments. Rather than introducing aggressive new revenue collection measures, the National Treasury opted for stability, targeted relief and structural adjustments that favour taxpayers, savers and small businesses.

The Supreme Court of Appeal (SCA) has delivered a judgment that reinforces SARS’ strict stance on understatement penalties and estimated assessments. The ruling confirms the South African Revenue Service (SARS)’s authority when taxpayers fail to provide accurate information. SCA confirms SARS’ firm approach to enforcement and compliance.

A recent Gauteng High Court judgment has brought clarity on the interaction between consolidation orders under the Companies Act and the South African Revenue Service’s (SARS) powers to raise tax assessments. In Prinsloo and Others N.O. vs CSARS and Another (020214-2023) [2025] ZAGPJHC (29 August 2025), the court quashed an attempt by liquidators to set aside SARS assessments against a Ponzi scheme.

A recent Supreme Court of Appeal (SCA) ruling should deliver a stark warning to businesses claiming input Value Added Tax (VAT) deductions without a watertight legal foundation. In Aveng Mining Shafts & Underground v CSARS (1192/2023) [2025] ZASCA 20, the SCA sided with South African Revenue Service (SARS) and disallowed almost R17.5 million in VAT input claims.

The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.

In an exciting recent development, National Treasury published a set of draft Tax and Revenue Law Amendment Bills, together with accompanying Explanatory Memorandums thereto, for public comment. These draft bills contained a host of robust proposed changes to tighten certain loopholes and inconsistencies in South Africa’s tax laws.