Taxation & Regulation news

South AfricaYour industry

Focus on digital marketing

Bizcommunity's special Focus On DIGITAL MARKETING is now available in a downloadable PDF.

Digital Marketing PDF >>
Bizcommunity has over 400 industry contributors and we always welcome further contributions and contributors.
Taxation & Regulation news

SARS must also wait in line

11 Feb 2013 09:58
Business rescue places a moratorium on legal proceedings against the company, which includes action from the South African Revenue Service (SARS).
Although SARS usually gets preferential status as a creditor when a company goes into liquidation, a recent judgment in SARS v Beginsel NO and Others has established a new precedent in terms of which it must wait in line for payment with all other unsecured creditors.

Graeme Palmer, senior associate at law firm Garlicke & Bousfield, said many businesses in financial distress had tax liabilities.

Although SARS might not be pleased with the recent court decision, allowing it to jump the queue in front of other creditors in the business rescue process would prevent the rescue of many distressed companies - resulting in their liquidation and rendering the business rescue process ineffectual.

Palmer said that, in most cases, companies accumulated tax liabilities in the ordinary course of business. There was a loophole in the law for SARS - as the regulator investigating offences - to become a preferential creditor, which he said would be justified when the taxpayer had concealed its true state of affairs or where there had been dishonest reporting.

Source: Sunday Times via I-Net Bridge


I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to:
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. will disclose authors' IP addresses to authorities if compelled to do so by a court of law.