In South Africa, section 31 of the Income Tax Act 58 of 1962 (“Income Tax Act”) applies the arm’s length principle to qualifying cross-border transactions, operations, schemes, agreements or understandings between relevant connected persons or associated enterprises.
The Shepstone & Wylie’s National Tax Team’s aim is to be the familiar faces when taxing circumstances arise, or when there is a concern or idea to be discussed.
The Western Cape High Court (Full Bench) has confirmed that taxpayers objecting to an assessment, including an estimated assessment, must submit all documents required to substantiate their grounds of objection, regardless of whether there was an estimated assessment by SARS.
The Gauteng High Court's recent judgment in BASF South Africa (Pty) Ltd v Commissioner for SARS is likely to become one of the most significant procedural tax judgments of 2026, particularly for taxpayers and SARS litigating transfer pricing disputes.
The Gauteng High Court’s recent judgment in Ndyamara NO and Others v Commissioner for the South African Revenue Service has reopened debate around one of South Africa’s most controversial procurement scandals — the failed PRASA locomotive tender involving Swifambo Rail Leasing.
South Africa’s Tax Court has delivered one of the most consequential tax judgments arising from the broader state-capture era, confirming SARS’s additional assessments against Taxpayer LE (Pty) Ltd in a matter involving alleged inflated locomotive procurement costs, offshore ‘business development’ payments, and billions in disputed deductions.
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.
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.
Taxpayers may be aware of SARS’ Voluntary Disclosure Programme (“VDP”), which provides taxpayers who are in default on their tax affairs an opportunity to voluntarily approach SARS to disclose their tax non-compliance and thereby regularise their tax affairs.
During the 2025 National Budget presentation, it was apparent that South Africa’s tax deficit is substantially impacting economic growth and public service delivery.
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