Navigating Tax Court Litigation: A Strategic Imperative for Tax Practitioners

Navigating Tax Court Litigation: A Strategic Imperative for Tax Practitioners

• 13 October 2025
• Tax Administration
• Louise Swart

In South Africa’s evolving tax landscape, the role of tax practitioners is undergoing a significant transformation. No longer confined to compliance and advisory services, practitioners are increasingly expected to possess litigation capabilities to effectively support clients in disputes with the South African Revenue Service (SARS). As tax audits intensify and assessments become more complex, the ability to navigate the Tax Court Rules is emerging as a critical skill—one that not only benefits clients but also positions practitioners for sustainable business growth.

The Rise of Tax Disputes in South Africa

Over the past decade, SARS has adopted a more assertive approach to tax enforcement. Enhanced digital systems, data analytics, and increased scrutiny have led to a surge in audits, additional assessments; and levying of penalties and interest. Taxpayers, ranging from individuals to large corporations, are finding themselves embroiled in disputes over, amongst others, VAT refunds, income tax assessments, PAYE discrepancies, and capital gains valuations.

Whilst many disputes can be resolved through administrative channels such as objections or alternative dispute resolution (ADR), a growing number of disputes escalate to formal litigation. This shift underscores the need for practitioners to understand the procedural and strategic dimensions of Tax Court Litigation.

Understanding Tax Court Litigation

Tax Court Litigation can be grouped into two main categories:

a) Interlocutory Disputes – aimed at resolving disputes related to the procedures applicable to the overall tax disputes; and

b) The adjudication of the main dispute.

Benefits to Clients: Protection, Strategy, and Resolution

Clients facing tax disputes are often overwhelmed by the complexity of legislation and the procedural hurdles involved. Tax practitioners with litigation expertise offer several key advantages:

1. Strategic Case Management

Litigation is not merely about arguing in court—it’s about strategic planning. Practitioners must assess the merits of a case, gather compelling evidence, and craft persuasive arguments. Understanding the nuances of the Tax Court Rules, such as Rule 6 (requesting reasons), Rule 32 (statement of grounds), and Rule 56 (default procedures) can significantly influence the outcome of a case.

2. Efficient Dispute Resolution

Clients benefit from practitioners who can streamline the litigation process, reducing delays and unnecessary costs. By leveraging procedural knowledge and engaging in pre-litigation strategies, practitioners can support a client’s case to ensure the avoidance of delays and costs.

3. Protection of Rights

Taxpayers are entitled to due process, including the right to challenge SARS assessments and present evidence. Practitioners with litigation skills ensure these rights are upheld, particularly in cases where SARS’s actions may be overly aggressive or procedurally flawed.

4. Expanding the Tax Practitioner’s Business

Beyond client service, litigation skills offer practitioners a pathway to business growth and differentiation in a competitive market.

Adding litigation to a practice’s portfolio allows practitioners to offer end-to-end tax dispute resolution, from initial audit support to Tax Court judgements. This holistic approach appeals to clients seeking continuity and expertise throughout the dispute process.

Businesses facing significant tax assessments or complex disputes are more likely to engage practitioners who can provide effective Tax Court Litigation support. These clients often require specialized representation, creating opportunities for practitioners to work on high-profile, high-fee matters.

Litigation expertise opens doors to collaborations with law firms, forensic accountants, and corporate advisors. Practitioners can become part of multidisciplinary teams handling intricate tax matters, enhancing their visibility and credibility in the industry.

Call to Action

By mastering litigation skills, practitioners not only safeguard their clients’ interests but also future-proof their practices in a regulatory environment that demands agility, expertise, and strategic thinking.

As SARS continues to modernize and enforce compliance with increasing vigor, the ability to litigate tax disputes will become a defining feature of successful tax practices. For practitioners willing to invest in upskilling, the rewards are clear: enhanced client outcomes, expanded service offerings, and a stronger position in South Africa’s competitive tax advisory market.

Join our upcoming webinar, Fundamentals of Tax Litigation & Strategy, where Louise will unpack key procedural rules, share practical strategies, and discuss how litigation skills can enhance your tax practice. Don’t miss this opportunity to strengthen your expertise in managing complex tax disputes.

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