The SARS lost its appeal bid in an decades-long battle against a swimwear model who received a R142m 'gift' from an overseas companion, after the Western Cape High Court ruled against it, Business Day reports.

But its fight with Candice-Jean Poulter will return to the Tax Court after the High Court ruled in a landmark decision in April that SA taxpayers could be represented by accountants and not just lawyers in Tax Court.

SARS' fight with Poulter and her father, businessperson Gary Walter van der Merwe, began in 2013 over what it deemed as tax debts.

It noted that Poulter received a 'gift' from an unknown person overseas and began interrogating her payments. It was agreed she would pay R44m in tax.

But Poulter contested payment years later in the Tax Court.

It ruled against her and confirmed she must pay, but Poulter appealed to the full Bench of the Western Cape High Court.

The full Bench ruled against SARS and ordered the matter back to the Tax Court, allowing Poulter’s father to represent her.

SARS sought leave to appeal from the High Court to take the case to the SCA, wanting to challenge the finding that non-lawyers could represent taxpayers. 

Western Cape High Court judge Ashley Binns-Ward said 'it would be an anomaly, bordering on absurdity' for him to grant SARS leave and that its challenge against the court’s finding 'goes against the weight of authority' already outlined in the April judgment.

Binns-Ward ordered SARS to pay the legal costs and confirmed the matter must be heard at a future date

Full Business Day report