Lucinde Rhoodie and Belinda Scriba in the Corporate Debt, Turnaround & Restructuring sector recorded an episode of CDH Conversations on Monday, 21 October 2024, where they spoke about the ongoing battle between South African Revenue Service (SARS) and the business rescue practitioners and business rescue scenarios.
The battle began in the infancy of business rescue when SARS insisted it be treated as a preferred creditor in business rescue, akin to its treatment in liquidation and sequestration scenarios. This position was successfully challenged in the High Court of South African by business rescue practitioner Bradley Beginsel N.O., represented by CDH. The latest battle surrounds the question of whether VAT rebates can be set off against pre-commencement tax obligations only assessed after business rescue has started. This issue is currently in the queue to come before the Supreme Court of Appeal.
