SOUTH AFRICA: Kusasa Refining (Pty) Ltd v Commissioner for South African Revenue Services

The Kusasa Refining Commissioner tax case is a legal dispute between Kusasa Refining (Proprietary) Limited, a company that operates a crude oil refinery in South Africa, and the Commissioner for the South African Revenue Services (SARS), the tax authority of the country.

The case involves the failure of SARS to finalize the value-added tax (VAT) audit of Kusasa Refining for the period from January 2019 to February 2021, despite the company providing all the requested information and documents. Kusasa Refining filed an application to review and set aside SARS’ decision for its unreasonable delay and violation of the Tax Administration Act, 2011. The High Court of South Africa Gauteng Division, Pretoria, heard the case on 19 April 2022.

The judgment was delivered by Sardiwalla J on April 20, 2022, in favour of Kusasa Refining.

The court found that SARS had acted unlawfully, irrationally, and procedurally unfairly in conducting the audit and failing to issue the audit findings within a reasonable time. 

The court ordered SARS to finalize the audit, issue the audit findings within 30 days of the order, and pay the costs of the application.


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