Landmark tax court victory paves the way for taxpayers' rights in South Africa

Stephen Grootes speaks to Jean-Roux van Huyssteen, director & tax attorney at TRM Tax Attorneys about a landmark victory against SARS in the tax court.

Listen to the interview in the audio player below. 

It's not often that someone wins a case against the taxman.

Well, a landmark judgement against SARS was recently handed down in the tax court, a judgment that not only favoured the taxpayer but also sets a significant precedent for taxpayers, businesses, and the broader industry.

The case centered on whether a R10 million premium paid under a "self-insurance" policy for citrus farming risks qualified as deductible under section 11(a) of the Income Tax Act.

The court ruled in the taxpayer's favour, marking a pivotal moment for the agricultural sector in particular.

Speaking to Stephen Grootes on The Money Show, Jean-Roux van Huyssteen, tax attorney and director at TRM Tax Attorneys says this legal triumph is a powerful reminder that taxpayers have rights even against a formidable entity like SARS.

"A lot of matters have just been settled, where taxpayers have just felt that the risk of taking SARS to court is a bit too big, but in this instance the taxpayer felt that they have done absolutely nothing wrong."

- Jean-Roux van Huyssteen, director - TRM Tax Attorneys

"It's defintely not the first time that they (SARS) are dealing with it, they have raised a lot of assessments through the audit processes on some of the matters."

- Jean-Roux van Huyssteen, director - TRM Tax Attorneys

"I think now it shows us, just because you have this policy, it doesn't automatically mean you qualify for a deduction or you don't qualify. You actually have to go and look what your policy says."

- Jean-Roux van Huyssteen, director - TRM Tax Attorneys

Scroll to the top of the article to listen to the full interview.