Dated 6 February 2024
In the case of SARS vs Pather, the High Court of South Africa assessed whether the Commissioner for the South African Revenue Service (SARS) acted lawfully in holding Pather jointly and severally liable for the tax debt of Impulse International (Pty) Ltd, due to her alleged involvement in dissipating assets to obstruct tax collection. The Court determined that SARS must prove that Pather knowingly assisted in the dissipation of funds to justify such liability.
Additionally, the Court ruled that Pather's legal remedies are limited to those outlined in section 184 of the Tax Administration Act (TAA), rather than those available to taxpayers contesting an assessment. The case has been referred to trial to ascertain whether Pather intentionally aided the dissipation of assets.
This judgment underscores the importance of proving intent in asset dissipation cases and clarifies the legal recourse available under South African tax law.
A copy of the full translated English language judgment can be found at: https://www.sars.gov.za/wp-content/uploads/Legal/Judgments/HC/Legal-DRJ-HC-2024-05-Pather-v-CSARS-52782-21-2024-ZAGPJHC-87-6-February-2024.pdf?utm_source=Dynamics%20365%20Customer%20Insights%20-%20Journeys&utm_medium=email&utm_term=N%2FA&utm_campaign=TiB%20ENSight%20%7C%2020%20FEB%202024&utm_content=TiB%20ENSight%20%7C%2020%20FEB#msdynmkt_trackingcontext=4edc0c4e-7f94-4a4e-b959-1af9bbaae256
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