Arena Holdings (Pty) Ltd t/a Financial Mail v SARS (88959/2019)
SARS has released a media statement indicating that it will apply for leave to appeal the judgement in the Arena Holdings matter in which SARS was ordered to turn over the tax records of former president Zuma to Financial Mail.
The High Court handed down a contentious judgement on 16 November 2021 in Arena Holdings (t/a Financial Mail) v SARS in terms of which SARS was compelled to release the tax records of former president Jacob Zuma to the news outlet.
Our summary of the case can be accessed here.
SARS is appealing the order and opposing the confirmation by the Constitutional Court of the unconstitutionality of the Promotion to Access to Information Act 2 of 2000 (“PAIA”) and Tax Administration Act 28 of 2011 (“TAA”). The sections under scrutiny include:
- Section 35 of PAIA which provides that disclosure of information obtained or held by SARS for the purpose of enforcing legislation concerning the collection of revenue must be refused if that information relates to a person other than the requester; and
- Section 69 of the TAA which imposes an obligation on SARS officials to “preserve the secrecy of taxpayer information” and prohibits the officials from disclosing taxpayer information to a non-SARS official.
In SARS’ view, the judgment as it currently stands, if left unchallenged, would undermine the sacrosanct principle of the confidentiality of taxpayer information, which is the bedrock upon which the work of SARS and other international revenue authorities is based.
“The public can be assured that SARS will defend the principle of confidentiality on behalf of every single taxpayer. Every taxpayer is equal before the law, and we will apply the laws relevant to SARS without fear, favour or prejudice,” says Commissioner Kieswetter.
As this matter is now before the courts, SARS has refrained from commenting further.
10/12/2021
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