On 22 April 2026, the Constitutional Court handed down its first substantive interpretation of South Africa's General Anti-Avoidance Rules ("GAAR") since they were amended in 2006. In a long-awaited judgment, delivered almost eight years after the SARS audit began, the majority judgment significantly broadened the scope of SARS's GAAR powers.
In today’s interconnected global economy, South African businesses frequently transact with international related parties. While these cross-border arrangements are essential for market alignment and growth, they fall squarely under the oversight of the South African Revenue Service (“SARS”) in terms of Section 31 of the Income Tax Act.
When a taxpayer relocates abroad or emigrates, then from a tax perspective, it is referred to as ceasing to be a South African tax resident (not to be confused with citizenship). Ceasing to be a South African tax resident may, however, come with a tax cost. One of the most consequential and frequently misunderstood provisions facing South Africans who relocate abroad is the deemed disposal triggered by section 9H of the Income Tax Act. When you cease your South African tax residency, section 9H applies, and the tax consequences can be significant if you are not properly prepared.
If you are a South African taxpayer with offshore interests, the landscape in which you operate is undergoing a fundamental shift. Increased international cooperation and enhanced domestic oversight means that the days of "offshore privacy" are largely behind us, as the South African Revenue Service (“SARS”) has strengthened its ability to detect undeclared foreign bank accounts, investments (including digital assets like cryptocurrency), and offshore asset-holding structures like companies and trusts. If you need to regularise your affairs, we propose that you consider SARS’ Voluntary Disclosure Program (“VDP”).
The Supreme Court of Appeal (“SCA”) delivered a unanimous judgment in Baseline Civil Contractors (Pty) Ltd v The Commissioner for the South African Revenue Service on 24 February 2026, providing definitive guidance on the limits of a taxpayer’s ability to amend their case during an appeal. The ruling clarifies the scope of Rule 32(3) of the Tax Court Rules, confirming that while taxpayers have some flexibility, they cannot use an appeal to introduce fundamentally new cases that target parts of an assessment never previously challenged.
The recent media ping-pong between Tshepo Lucky Montana (“Montana”) and the South African Revenue Service (“SARS”) has brought the country’s attention towards SARS’ obligation to protect taxpayer confidentiality and the very limited circumstances where SARS may disclose any information regarding taxpayers.
The Budget Speech of 2025 was not as devastating as initially expected with the rumours of the 2% VAT increase, although VAT did not remain untouched.
The postponement of the budget speech which was set to take place on Wednesday, 19 February 2025 has left the country questioning exactly what could have been in the budget that was so controversial that the speech could not go ahead but had to be postponed until 12 March 2025.
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