Tag: TaxLaw

On 7 September 2026, the Supreme Court of Appeal (SCA) handed down a significant judgment against the South African Revenue Service (SARS). The judgment confirmed that certain financing fees qualify for tax deductions under section 24J of the Income Tax Act, 58 of 1962.

On 26 June 2026, the Western Cape High Court, in Commissioner for the South African Revenue Service (SARS) vs Meiring Citrus (Pty) Ltd, upheld SARS's appeal. The court held that a R10 million self-insurance deduction was not allowable. What began with a R10 million tax deduction claimed in Meiring Citrus' 2017 year of assessment ultimately resulted in years of verifications.

On 23 June 2026, the Constitutional Court delivered a unanimous judgment in Lueven Metals (Pty) Ltd vs Commissioner for the South African Revenue Service (SARS). The court confirmed that the zero-rating of gold under section 11(1)(f) of the Value Added Tax Act No. 89 of 1991 (VAT Act) does not apply to second-hand or recycled gold that has already undergone prior manufacturing.

Time has run out for non-compliant trusts. Since 4 May 2026, the South African Revenue Service (SARS) has imposed administrative penalties on trusts with outstanding tax returns. SARS levies these penalties monthly. In some cases, penalties may reach R16,000 per outstanding return.

The South African Revenue Service (SARS) issued VAT Ruling: VR 020 – Consideration (VR 020) on 28 April 2026. The ruling addresses the Value-Added Tax (VAT) treatment of deposits received by game reserves when guests forfeit those deposits after cancelling bookings.

Two recent Tax Court judgments produced markedly different outcomes. These outcomes raised questions about condonation in the court. In particular, they highlighted uncertainty in how condonation principles apply. Practitioners often recognise this tension. However, case law rarely states it so directly.

The South African Revenue Service (SARS) recently surpassed R2 trillion in net revenue collection for the 2025/26 fiscal year. This milestone marks the highest revenue collected in the country’s democratic era. It also highlights SARS’s commitment to effective tax administration. In particular, SARS continues to enforce sanctions for non-compliance through SARS’ targeted compliance programmes. Despite several challenges, SARS has maintained strong performance.

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.

Have you been living the life on social media and not telling SARS? Have you gone on overseas trips to exotic destinations? More so, have you purchased new cars, houses, expensive brand clothes, watches or jewellery? The latest legislative change spans at least 14 government bodies that can conduct lifestyle audits.

In its relentless pursuit of tax compliance, the South African Revenue Service (SARS) has launched a series of initiatives to streamline tax processes through automation enhancements. Specifically, these initiatives identify focus areas to strengthen detection, enforcement and voluntary compliance. As a result, SARS has introduced SARS Modernisation 3.0.