MM Auditors • Ouditeure, Chartered Accountants (SA), Vryheid · 26 October 2026
This week: the High Court orders the South African Revenue Service (SARS) to reconsider a taxpayer's request to cancel assessments based on returns a consultant allegedly filed without authority, and the Minister of Finance tables three tax bills that could change provisional tax penalties and Value-Added Tax (VAT) payment dates.
Each week we pick the court cases and SARS guidance that matter most to our clients, explain what happened, and set out what it means for you.
In this issue
TEG Asset & Risk Management – when someone files returns on your eFiling profile without your authority
New tax bills before Parliament – what may change for provisional taxpayers, VAT vendors and small businesses
Other judgments to watch, including an update on the Muleya case
New SARS guidance: influencers and content creators, diesel refunds and trusts
Diary reminder and contact
1. Returns filed without your authority: TEG Asset & Risk Management CC v CSARS
TEG Asset & Risk Management CC v Commissioner for the South African Revenue Service (CSARS) (case 2023-110354) – High Court, Gauteng Division, Johannesburg (Judge Wright), heard 7 October and delivered 8 October 2026. SARS published it on 20 October 2026.
Overview of the case
The taxpayer: TEG, a close corporation (CC) with one member. An outside accountant had handled its books and tax returns since 2010 and was registered with SARS as its public officer.
The facts: The accountant sub-contracted a tax consultant who held TEG's eFiling codes. She submitted TEG's 2017 income tax return and several VAT returns for 2015 to 2017. TEG says she was never authorised to do so and that it only found out in September 2022. By then SARS had already declined objections (2019) and taken money from TEG's bank account (June 2020).
The request: In October 2022 TEG asked SARS for reduced assessments under section 93(1)(e)(iii) of the Tax Administration Act (TAA). This allows SARS to fix an assessment based on a return that was fraudulent and submitted by someone the taxpayer did not authorise.
SARS's view: SARS refused twice (October 2022 and February 2023). It reasoned that the accountant was TEG's validly appointed public officer, so the returns were filed with authority and section 93 did not apply.
The taxpayer's view: The accountant was never properly appointed as public officer, and SARS never looked at the real question: who actually filed the returns, and whether they were fraudulent.
Finding: The court held that the accountant was validly appointed as public officer, so that argument failed. But appointing a public officer does not settle who submitted a return or whether that person had authority. SARS never disputed TEG's evidence that the consultant was not authorised, so its only reason for refusing was wrong.
Outcome: SARS's two decisions were set aside and sent back to SARS to decide afresh. SARS must pay TEG's legal costs. The court did not find that the returns were fraudulent, so TEG has not yet won relief from the tax itself. The judge also noted that the key facts were not clearly put to SARS earlier.
What it means for taxpayers
You stay responsible for your returns: The court and commentators stress that a practitioner's mistakes or misconduct do not, on their own, cancel your tax. Section 93 needs both a fraudulent return and an unauthorised filer.
Guard your eFiling profile: Know who holds your eFiling login details, and change passwords when a bookkeeper, consultant or employee leaves. Check eFiling regularly for returns you did not approve.
Know who your public officer is: Every company and CC must have a public officer registered with SARS. If that person is an outside accountant you no longer use, update it on eFiling straight away.
Act quickly: TEG only discovered the problem years later, after SARS had already collected. The sooner you raise an irregularity, the more options you have.
Put it all in writing to SARS: TEG had to go to court partly because its request was not clearly documented. A request for reduced assessment needs a clear explanation and supporting documents.
Section 93 is not a back door: It does not replace the normal objection and appeal process, and it will not rescue missed objection deadlines.
Action point: Ask us for a quick eFiling review. We can confirm who is registered as your public officer and representative, and list the returns filed on your profile over the past five years.
2. New tax bills before Parliament
There was no second new tax judgment this week, so our second item is legislation. On 21 October 2026 three bills were introduced in the National Assembly: the Taxation Laws Amendment Bill (B32—2026), the Tax Administration Laws Amendment Bill (B33—2026) and the Rates and Monetary Amounts and Amendment of Revenue Laws Bill (B34—2026). These are proposals only and may still change in Parliament.
Overview of the main proposals
Provisional tax penalty threshold: The taxable income level above which the 20% underestimation penalty is tested more strictly would rise from R1 million to R1.8 million, for years starting on or after 1 March 2026.
Late second provisional payments: If the second payment is not paid in full within one month of its due date, SARS would treat the amount actually paid as your final estimate. This could trigger the underestimation penalty, and SARS could only waive it if the delay was not intentional or negligent.
Voluntary Disclosure Programme (VDP): Applicants would be able to ask SARS to waive interest on the disclosed tax, for applications received from 1 March 2026.
VAT due date: All VAT vendors would file and pay by the last business day of the month, instead of the 25th for those not using eFiling, from 1 April 2027.
Penalty remission: After SARS decides on a request to waive a penalty, the period before it may start collecting would shrink from 21 to 10 business days. A refused request could be taken on objection and appeal.
Banks screening refunds: Banks would be allowed to report suspicious tax-related payments to SARS and hold refunds for up to two business days.
Micro businesses: Small businesses using turnover tax would have to elect it before the end of the year of assessment, with the current extension options removed from 1 January 2027.
What it means for taxpayers
Provisional taxpayers: Paying the second instalment late could become much more expensive. Plan to pay the full amount by the end of February.
Farmers and small businesses earning under R1.8 million: The higher threshold should make the stricter penalty test apply to fewer of you, if the bill passes as drafted.
Undisclosed tax problems: The VDP may become more attractive if interest can also be waived. Speak to us before SARS contacts you, as the VDP is only available if SARS has not started an audit or investigation on the issue.
Turnover tax: If you are thinking of moving to turnover tax, decide early in the year rather than leaving it to the deadline.
Action point: We will report when the bills are passed and the final dates are known. No action is needed yet.
3. Other judgments to watch
Apart from TEG, SARS's judgment pages and the Southern African Legal Information Institute (SAFLII) show no new Tax Court, Supreme Court of Appeal (SCA) or Constitutional Court tax judgments since our last issue. One case we flagged remains open.
11 Sep 2026 – Roy Muleya v CSARS (leave to appeal) (48495/2021), High Court, Gauteng (Pretoria). Follow-up: Whether the taxpayer may appeal an earlier High Court ruling. SARS's published copy still cannot be read, and we have not found another copy, so the outcome will follow.
4. New SARS guidance
SARS's "What's New" page shows no new interpretation notes or binding rulings for 19 to 26 October, but SARS issued a new guide for influencers, asked diesel refund users to fix their eFiling profiles, and tightened a compliance step for trusts sending money offshore.
21 Oct 2026 (effective 20 Oct) – Guide: Taxation of income received by social media influencers and content creators (online creators, side income): Free products, trips and experiences received in return for posts are taxable at their value, not only cash. Only business costs are deductible, and mixed-use items (phone, data, clothing) must be split. VAT registration is compulsory above R2.3 million in 12 months. Keep records for five years.
20 Oct 2026 – Diesel refunds: update your profile before registering (diesel refunds, farmers): Existing diesel refund users must register again on the new Diesel Refund System; it is not automatic. First your entity's tax and customs profiles must be validated, confirmed and merged on eFiling. Without that you cannot access the new platform.
From 16 Oct 2026 – Trusts: enhanced manual letter of compliance (trusts moving funds abroad): A resident trust that gives its bank a manual letter of compliance for a foreign transfer now also needs a Tax Compliance Status (TCS) showing good standing. Outstanding trust returns will hold up the transfer.
19 Oct 2026 – e@syFile release 8.0.2 (employers): Updated software, including the EMP301 form. SARS's small business newsletter says moving from 8.0.1 needs a full uninstall and reinstall.
Action points
Farmers claiming diesel refunds: Log in to eFiling now and check that your farm entity's profile is merged and confirmed, then register on the new system. Send us your eFiling details if you would like us to do this for you.
Content creators and side hustles: Keep a simple register of every gifted product and sponsored trip, with its value, along with your payout statements. Ask us whether provisional tax or VAT registration applies to you.
Trustees: File any outstanding trust returns before you need a TCS for a foreign transfer. The trust return deadline is 22 January 2027.
Employers using e@syFile: Install version 8.0.2 before submitting the interim EMP501 reconciliation.
5. Diary reminder and contact
31 October 2026: Employers must submit the interim Pay-As-You-Earn (PAYE) reconciliation (EMP501) for March to August 2026. The employer filing season closes on the same day (SARS small business newsletter, October 2026).
4 November 2026: Comments close on SARS's draft customs rule 74B on advance rulings.
6 November 2026: Submit and pay the monthly employer declaration (EMP201) for October payrolls. The 7th falls on a Saturday, so payment is due on Friday the 6th.
22 January 2027: Returns due for provisional taxpayers and trusts. Start gathering farm, business and trust records now.
Questions about any of these cases? Contact Mariska Malan CA(SA) RA
Email: mariska@mmrek.co.za
WhatsApp: 065 669 3163
Office hours: Monday to Friday, 07:30–16:00
MM Auditors • Ouditeure, Chartered Accountants (SA), Vryheid
This newsletter is general information, not tax advice. Please speak to us before acting on it, as the right answer depends on your own facts.