Possession, as they say, is nine tenths of the law. Generally in
commercial litigation where, for example, a claim for an
outstanding amount is brought against a party, such party is not
required to make payment to the claimant until a court has
adjudicated on the matter.
However, when it comes to matters of tax, the Tax Administration
Act, No. 28 of 2011 ('TAA') requires taxpayers to first
make payment to SARS on assessment and then to pursue their various
remedies against SARS.
It is true that if the taxpayer eventually persuades SARS or a
court that the assessment was incorrect and the tax was not owed by
it, the disputed amount will be refunded to the taxpayer with
interest. However, the payment of the tax generally places the
taxpayer at a disadvantage as it may have to fund the tax payment
for a number of years whilst it pursues its various remedies. One
recent tax case took approximately ten years from date of
assessment until judgment by the Supreme Court
