Tag: TaxLaw
Power and politics – no protection from SARS?
The vision of “A Smart Modern South African Revenue Service (SARS) with unquestionable integrity admired by all” is a profound set of words shared by Dr Johnstone Makhubu, SARS Commissioner, at the 13th Annual Tax Indaba. Beyond words, SARS’ actions have more than echoed this sentiment. They have made it clear to the world that political power, fame and money cannot keep non-compliant taxpayers off SARS’ radar.
Trust tax compliance – IT3(t) data becomes a critical priority
On 8 September 2026, the South African Revenue Service (SARS) published its 2026 Trust Income Tax Season updates. The updates introduce third-party reporting data to pre-populate information on trusts’ tax returns. This stands out as one of the most significant developments for trust tax compliance.
Tax deductibility – SCA rules on financing fees
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.
Insurance deductions – court clarifies tax treatment.
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.
Recycled gold VAT ruling – resetting after refining?
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.
Trust tax penalties enforcement reshapes compliance obligations
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.
SARS clarifies forfeited deposits – game reserves on notice
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.
Condonation in the court – when procedure depends on the player
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.
SARS’ targeted compliance programmes help achieve R2 trillion
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.
2026 Tax Amendments – relief in some areas, refinement in others
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.
