Three ways court judgments against SARS can benefit your company
Are you guilty of the misperception that court cases against SARS don't affect the average daily personal and working life of the man in the street? Nothing could be further from the truth! In fact, every day new disputes, schemes and uncertainties come to light that haven't been covered before and, in many cases, they're decided in your favour. Read on to discover how tax law court judgments could benefit your company...
Court decisions have provided some important protection to safeguard your company against abuse at the hands of SARS.
Essentially, this is because court cases help simplify grey areas in tax law. 'In many cases these grey areas will be cleared up in the annual amending legislation, but many others end up in court, leaving the court responsible to interpret, clarify, express views and issue judgments,' explains The Practical Tax Loose Leaf Service.
And this is how you benefit…
Here's how your company benefits from court judgments
The Practical Tax Loose Leaf Service gives you reason why court judgments are important to you and how you can benefit from them:
The judge is an impartial and objective party who can decide the case based on the merits and on the law without being influenced by either party.
Judgments settle disputed tax law issues and tell you how certain issues must be treated. That's because SARS relies heavily on judgments and places strong emphasis on court judgments or rulings. 'If you have a dispute with SARS and can refer to a case based on a similar point of law which was decided in favour of the taxpayer, this will have considerable persuasive power,' says the Loose Leaf. Depending on the authority and standing of the court, it may even be binding on SARS and strengthen your case.
Every action taken by you, which could possibly have the slightest tax consequence, may already have been the subject of a previous court case. This provides certainty on the issue and may save you having to institute legal proceedings yourself.
Remember, you may find it difficult to dispute certain issues that have in principle already been brought before the courts. 'SARS will merely refer you to past judgments, so don't waste valuable time and money trying to rehash old ground' says the Loose Leaf.
Well there you have it. Visit the SARS website to familiarise yourself with some of the previous rulings from recent court judgments to see how the outcome could benefit your company.