Commissioner for the South African Revenue Service v Rappa Resources (Pty) Ltd

On 29 March 2021 the Commissioner for the South African Revenue Service (SARS) issued VAT assessments, penalties and interest against Rappa Resources (Pty) Ltd. Instead of lodging objections and appeals under the Tax Administration Act 28 of 2011 (TAA), Rappa launched an urgent review application in the Gauteng Division of the High Court seeking to set aside the assessments on legality grounds. Rappa demanded production of the record under Uniform Rule 53. SARS refused, contending that in terms of section 105 of the TAA the High Court lacked jurisdiction absent a prior directive permitting deviation from the statutory objection-and-appeal process. The High Court nonetheless compelled SARS to produce the record while postponing the section 105 jurisdictional issue. SARS appealed to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. The High Court’s order was set aside and replaced with an order dismissing Rappa’s application with costs, including those of two counsel.

The judgment authoritatively clarifies the operation of section 105 of the Tax Administration Act, confirming that the objection and appeal process is the default and that High Court intervention requires an express directive granted in exceptional circumstances. It reinforces jurisdiction as a threshold issue and confirms that courts may not compel Rule 53 records before establishing jurisdiction. The case strengthens procedural discipline in tax litigation and limits attempts to bypass the tax court through legality reviews.