Tax Court Judgments on the Tax Administration Act

14 February 2023

1. (ADM) ZATC JHB (29 December 2022) concluding that tax administration: Rule 31 statement be struck out on the basis that it introduces an impermissible new ground of assessment in the appeal.
2. SARSTC 2022/12 (ADM) [2022] JHB (21 December 2022), a default judgment based on delivery of the notices found to be fatally defective because they were not delivered to the chosen address for delivery of documents or processes by SARS in terms of Rule 2 of the Tax Administration Act relating to section 103. Rule 2 deals with the ’Prescribed form and manner and date of delivery’ of Notices.

• Rules 2 includes rules promulgated under section 103 of the Tax Administration Act, 2011 (ACT NO. 28 OF 2011), prescribing the procedures to be followed in lodging an objection and appeal against an assessment or a decision subject to objection and appeal referred to in section 104(2) of that act, procedures for alternative dispute resolution, the conduct and hearing of appeals, application on notice before a tax court and transitional rules.

• Application for default judgment was based on the alleged failure by SARS to comply with the Rules of the Tax Court. The application was made on the basis of the purported notices made by the applicant in terms of rules 56(1)(a) and 56(1)(b) of the Rules. The delivery of the notices found to be fatally defective because they were not delivered to the chosen address for delivery of documents or processes by SARS in terms of rule 2 of the Rules. The application is further fatally defective because it was not delivered on SARS in terms of rule 57 of the Rules. The application was delivered to the Registrar of the Tax Court and not to SARS. The application is dismissed and costs are awarded on attorney and client scale due to the reprehensible conduct of the applicant.

What are Tax Court Rulings?

Tax Court Rulings in South Africa are decisions made by the Tax Court, which is a specialized court that hears appeals against tax assessments and other decisions made by the South African Revenue Service (SARS). The Tax Court is a division of the High Court and has jurisdiction to hear tax cases at a regional level.

Tax Court Rulings are legally binding decisions made by a judge of the Tax Court. They provide guidance on how the tax law should be interpreted and applied in specific cases. Tax Court Rulings are generally only binding in relation to the specific taxpayer and the specific tax issue that was the subject of the ruling, although they may be persuasive in other cases.

Tax Court Rulings can be appealed to a higher court, such as the High Court, but only on a question of law. This means that the decision will not be reconsidered on the basis of the facts of the case, but only on the basis of whether the law was correctly interpreted and applied.

Tax Court Rulings are an important source of guidance and precedent in tax law in South Africa. They provide taxpayers with greater certainty and consistency in the application of tax laws and help to ensure that the tax system is fair and transparent.

Summaries are available on the Tax Court Judgments page here:

For SARSTC IT 45997 (ADM) ZATC JHB read here.

For SARSTC 2022/12 (ADM) [2022] JHB read here.