Interesting Judgment: Henque 3935 cc t/a PQ Clothing Outlet v Commissioner for SARS

17 March 2023

Members,

Please find attached a judgment handed down in the South Gauteng, High Court, regarding the question of whether SARS may set-off a VAT refund against an income tax liability.

The Court found that on a reading s 5(1)(d) of the Income Tax Act in the context of ss 1, 92 and 96 of the Tax Administration Act it was clear that the income tax only became due and payable when the assessment or additional assessment is made and issued to the taxpayer.

The application for declaratory relief was dismissed with costs.

Kindly sent to us by Juanita Steenekamp of SAICA.

Take care
René Bekker
Chief Operating Officer

  Judgment: Henque 3935 cc t/a PQ Clothing Outlet v Commissioner for SARS. Case no: 35790/2020.pdf