- Sars lost a case against Henque 3935cc over tax refunds worth over R1-million.
- The Supreme Court of Appeal ruled Sars could not use VAT refunds to settle older tax debts.
- Henque operated around 40 stores and entered business rescue in January 2018.
- Henque declared a loss for the 2017 financial year, resulting in no tax due.
- Sars audited the return and later used VAT refunds to pay off 2017 tax liability.
- Henque argued the debts were pre-business rescue, while Sars disagreed.
- The court ruled the debts were pre-business rescue liabilities.
- The appeal was upheld with costs.
Source: sundayworld.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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