{"id":97540,"date":"2026-04-19T14:17:39","date_gmt":"2026-04-19T14:17:39","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly"},"modified":"2026-04-19T14:42:34","modified_gmt":"2026-04-19T14:42:34","slug":"one-day-delay-could-cost-south-african-taxpayers-dearly","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly","title":{"rendered":"One-Day Delay Could Cost South African Taxpayers Dearly"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>Recent court rulings have revealed inconsistent application of tax principles, with taxpayers facing stricter scrutiny for minor delays while SARS receives leniency for non-compliance.<\/p>\n

Tax Consulting SA\u2019s head of tax controversy and dispute resolution, Andre\u0301 Daniels, said two recent Tax Court judgments had markedly different outcomes, casting doubt on the applicability of condonation principles.<\/p>\n

These decisions bring into focus an issue that practitioners will recognise instinctively, yet which is seldom articulated so directly in the case law.<\/p>\n

The issue in question is the apparent variability in how condonation principles are applied, depending on the context in which they arise.<\/p>\n

The two cases are Taxpayer EV v The Commissioner for the South African Revenue Service IT (Taxpayer EV) and The Commissioner for the South African Revenue Service v Taxpayer 3C VAT (Taxpayer 3C).<\/p>\n

When compared, they reveal a notable divergence in approach. In one matter, the taxpayer is required to meet a demanding and multi-layered standard, ultimately failing despite a minimal delay.<\/p>\n

However, in the other case, SARS overcomes a delay spanning several years and is nevertheless granted condonation.<\/p>\n

Daniels said this contrast raises an important question for taxpayers and advisors alike \u2013 whether condonation in the Tax Court is applied consistently across different litigants.<\/p>\n

In Taxpayer EV, the taxpayer sought condonation for the late filing of an expert notice and summary. The delay was a single day in each instance.<\/p>\n

On its face, this would appear to fall within the category of procedural non-compliance that courts often overlook in the interests of justice. However, the court\u2019s analysis extended well beyond the narrow period of delay.<\/p>\n

The taxpayer was required to account not only for the one-day non-compliance, but for a broader period spanning several years during which the expert report had already been available but not filed.<\/p>\n

The taxpayer explained that the delay was due to budgetary constraints, but this reason was rejected as insufficient.<\/p>\n

The court characterised the taxpayer\u2019s conduct as tactical and reactive, particularly given the timing of the filings following SARS\u2019s expert disclosures.<\/p>\n

The enquiry then expanded to the taxpayer\u2019s bona fides, including a lack of candour in initially denying that condonation was required.<\/p>\n

Most significantly, the court examined the substance of the expert evidence, concluding that it was largely inadmissible because it ventured into legal interpretation rather than providing proper expert assistance.<\/p>\n

This proved decisive, Daniels said. The absence of probative value in the proposed evidence meant the taxpayer could not demonstrate a prospect of success, and condonation was refused.<\/p>\n

What emerges is that, in this context, condonation was not confined to explaining the delay. It became an extensive inquiry into the litigant\u2019s entire conduct, strategy, and underlying case.<\/p>\n

One principle, two different outcomes<\/b><\/p>\n

The position adopted in Taxpayer 3C stands in contrast, Daniels said. In this matter, SARS filed its Rule 31 statement approximately four years out of time.<\/p>\n

The taxman\u2019s explanation rested on the medical incapacity of the responsible official, combined with internal capacity constraints and an administrative failure to reassign the matter.<\/p>\n

While the court acknowledged both the length of the delay and the prejudice to the taxpayer, it nevertheless accepted the explanation as satisfactory.<\/p>\n

The court then turned to broader considerations, including the importance of proper tax administration and the need for disputes involving public revenue to be fully ventilated.<\/p>\n

It also considered the apparent merits of the revenue service\u2019s underlying case, noting weaknesses in the taxpayer\u2019s VAT position.<\/p>\n

On this basis, condonation was granted. Although SARS was ordered to pay costs, the practical effect of the judgment is that the taxman\u2019s extensive non-compliance was excused and the matter proceeded on the merits, Daniels explained.<\/p>\n

Both judgments apply the same established condonation principles, including the need for a full explanation, bona fides, prospects of success, and consideration of prejudice and the interests of justice.<\/p>\n

However, Daniels noted that their application reflects a discernible difference in emphasis. In Taxpayer EV, the taxpayer was required to provide a comprehensive explanation.<\/p>\n

It had to cover years of conduct, demonstrate procedural diligence, and establish that its evidence would meaningfully assist the court. \u201cThe enquiry was rigorous, layered, and ultimately unforgiving,\u201d Daniels said.<\/p>\n

In Taxpayer 3C, the court adopted a more flexible approach. Despite a delay of several years, a relatively general explanation was accepted, he said.<\/p>\n

The shortcomings in that explanation were balanced against the perceived importance of the matter and the broader public interest in tax collection.<\/p>\n

The reason for the different outcomes<\/b><\/p>\n

A key point of divergence lies in how the courts approached the merits, Daniels said. In the taxpayer\u2019s case, weak or inadmissible evidence effectively precluded condonation. The merits operated as a limiting factor.<\/p>\n

In SARS\u2019s case, the merits operated as a supporting consideration, favouring the grant of condonation despite procedural failings.<\/p>\n

Similarly, Daniels noted that the invocation of the interests of justice appears to carry different practical implications depending on the circumstances.<\/p>\n

For the taxpayer, the interests of justice reinforced the need for strict compliance and evidentiary integrity.<\/p>\n

For SARS, it supported allowing the matter to proceed notwithstanding significant delay, in order to ensure that the dispute is determined substantively.<\/p>\n

Daniels explained that the differing outcomes may be understood through the lens of several underlying considerations.<\/p>\n

\u201cThere is a clear public interest in ensuring that tax disputes are determined on their merits, particularly where public revenue is implicated,\u201d he said.<\/p>\n

\u201cCourts may therefore be reluctant to dispose of matters involving SARS on procedural grounds where this would prevent a full adjudication of the tax liability.\u201d<\/p>\n

He added that there is also recognition of institutional realities, including capacity constraints and administrative burdens, which may inform a more accommodating approach in certain instances.<\/p>\n

\u201cAt the same time, taxpayers are expected to maintain a high degree of procedural discipline, particularly where their conduct may be perceived as strategic or where the evidentiary foundation of their case is uncertain,\u201d he said.<\/p>\n

In light of these cases, Daniels stressed that taxpayers and practitioners must approach procedural compliance as a substantive requirement.<\/p>\n

\u201cEven minimal delays can trigger extensive judicial scrutiny, particularly where there are weaknesses in the underlying case,\u201d he warned.<\/p>\n

\u201cExplanations must be comprehensive, candid, and address the full period of non-compliance. Importantly, condonation should not be viewed as a mechanism to remedy deficiencies in evidence or litigation strategy.\u201d<\/p>\n

At the same time, Daniels said these judgments reflect that the application of condonation can differ depending on the circumstances.<\/p>\n

\u201cWhile SARS may still face adverse cost orders, it may nonetheless be afforded greater latitude where broader systemic or public interest considerations are engaged,\u201d he said.<\/p>\n

For More News And Analysis About South-Africa<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. Recent court rulings have revealed inconsistent application of tax principles, with taxpayers facing stricter scrutiny for minor delays while SARS receives leniency for non-compliance. Tax Consulting SA\u2019s head of tax controversy and dispute resolution, Andre\u0301 Daniels, said two recent Tax Court judgments had markedly different outcomes, casting doubt on the applicability of […]<\/p>\n","protected":false},"author":84,"featured_media":97539,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3,5],"tags":[275],"class_list":["post-97540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","category-economy","tag-south-africa-2"],"yoast_head":"\nOne-Day Delay Could Cost South African Taxpayers Dearly - South Africa<\/title>\n<meta name=\"description\" content=\"Recent court rulings have revealed inconsistent application of tax principles, with taxpayers facing stricter scrutiny f ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"One-Day Delay Could Cost South African Taxpayers Dearly\" \/>\n<meta property=\"og:description\" content=\"Recent court rulings have revealed inconsistent application of tax principles, with taxpayers facing stricter scrutiny f ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-19T14:17:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-19T14:42:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/04\/sm_1776597121.598684.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"One-Day Delay Could Cost South African Taxpayers Dearly\",\"datePublished\":\"2026-04-19T14:17:39+00:00\",\"dateModified\":\"2026-04-19T14:42:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly\"},\"wordCount\":1118,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/04\/sm_1776597121.598684.jpg\",\"keywords\":[\"South-Africa\"],\"articleSection\":[\"all news\",\"community\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/one-day-delay-could-cost-south-african-taxpayers-dearly\",\"name\":\"One-Day Delay Could Cost South African Taxpayers Dearly - 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