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No hiding from tax debt: court backs SARS in major legal win

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No hiding from tax debt: court backs SARS in major legal win

Heinrich Louw, Director in the Tax & Exchange Control, was recently featured on Channel Africa, where he discussed 'No hiding from tax debt: court backs SARS in major legal win.'

29 May 2025 08:05 Minutes Radio interview
No hiding from tax debt: court backs SARS in major legal win

No hiding from tax debt: court backs SARS in major legal win

Podcast

No hiding from tax debt: court backs SARS in major legal win

Podcast

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Heinrich explains that under Section 180 of the Tax Administration Act, individuals involved in a company’s financial management can be held personally liable for its tax debts if they act negligently or fraudulently.

Heinrich adds that this process does not require court oversight. SARS can take unilateral action, and while individuals can make representations, if dismissed, they must approach a court to challenge the decision.

The constitutionality of this section was recently tested and upheld. Heinrich adds that the court found that the legislation does not violate constitutional rights such as access to courts or property rights, noting that safeguards and remedies are in place. This case highlights the growing personal accountability in tax matters and the importance of understanding the legal landscape.

Click here to listen to the interview.

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