- The Supreme Court of Appeal of South Africa delivered a judgment in the case between Henque 3935 CC t/a PQ Clothing Outlet and the Commissioner for the South African Revenue Service.
- The appeal was heard on 19 August 2024 and the judgment was delivered on 12 May 2025.
- The main issue was whether tax liabilities arising from additional assessments by SARS after the commencement of business rescue are pre
- or post-commencement debts.
- The court ruled that liabilities for income tax and VAT for periods ending on or before 31 January 2018 are pre-commencement claims.
- Claims arising before the commencement of business rescue cannot be set off against liabilities during the business rescue period.
- The appeal was upheld with costs, including the costs of two counsel, and the high court’s order was set aside.
Source: sars.gov.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.
