Zikhulise Cleaning Maintenance and Transport CC (HC 28084-2012 NG)
19 June 2012
Posted by: SAIT Technical
The matter dealt with a tax clearance certificate which was withdrawn by SARS and it was found that the action was invalid.
Zikhulise Cleaning Maintenance and Transport CC is in the business of constructing affordable housing through Government tenders, it relies on a clearance certificate issued by SARS to be able to conduct its business. SARS issued such a certificate on 17 January 2012 which was valid for a period of 12 months.
On 16 March 2012 SARS issued a letter to the holder of the certificate informing them that the tax clearance certificate had been cancelled effectively from the date of their letter. Zikhulise Cleaning Maintenance and Transport CC received the letter on 18 March 2012.
On 26 April SARS issued a letter wherein it stated that it was in the process of considering whether to withdraw the certificate and that, 'the facts as to why you are not compliant appear from our letter of 16 March 2012'. Zikhulise Cleaning Maintenance and Transport CC is invited to make representations by 11 May if the applicant disputes the fact.
Did the holder of the tax clearance certificate receive reasonable notice of SARS' intention to call the certificate into question and an opportunity to put its case to SARS. These opportunities should have occurred before 16 March, 2010.
I grant an order that the decision is of no force and effect.
An extract from the actual order granted is:
The decision of CSARS to invalidate/cancel/withdraw the Tax Clearance Certificate, Number 0020/1/2012/0002509263) "the Tax Certificate" for the period from 17 January 2012 to 16 January 2013 or for any portion of that period and which decision were first communicated to Zikhulise Cleaning Maintenance and Transport CC by letter dated 16 March 2012 and received on 18 April 2012, shall be of no force and effect;
Zikhulise Cleaning Maintenance and Transport CC is given leave to approach this court on an urgent basis, should the circumstances so warrant, on these papers duly supplemented for an order:
- Declaring that the Tax Certificate shall be deemed to be valid and current pending the outcome of the relief sought in Part B;
- Permitting Zikhulise Cleaning Maintenance and Transport CC to rely on the Tax Certificate pending the outcome of the relief sought in Part B.