ConCourt’s Capitec Bank Limited vs Sars ruling: A significant ruling in Tax law

By Sinovuyo MbataniThe Constitutional Court’s ruling in the case of Capitec Bank versus the South African Revenue Service (Sars) will have implications for tax law in South Africa.At the heart of the matter was a contentious dispute over the deduction of input Value Added Tax amounting to a staggering R71 million, claimed by Capitec Bank. The court’s decision, however, was not a sweeping victory for either party.“Sars emphasised that the judgment should not be extrapolated beyond this case,” it cautioned against broad generalisations.Initially, Capitec sought to deduct the full R71…