One of South Africa’s biggest fuel suppliers, Astron Energy, is digging in its heels against a hefty R2.7 billion tax demand from the South African Revenue Service (SARS) – and the battle is now officially headed to court.
The dispute centres around findings from a SARS customs and excise audit covering the period between May 2015 and March 2017 – before Glencore acquired the company. SARS claims that Astron underpaid excise duties and fuel levies during that time and followed up with a formal letter of demand in October 2019, stating the company owes R2.714 billion – penalties and interest included.
But Astron isn’t rolling over.
They argue that the assessment is riddled with both legal and factual errors. According to their version, SARS was also out of line for rejecting the company’s efforts to offset the alleged debt through refund claims for taxes they say were overpaid in other instances.
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Instead of letting SARS’ demand go unchallenged, Astron took the matter to the Western Cape High Court, seeking relief in one of two ways: either have the taxman’s decision reversed directly or tossed out through judicial review.
In an early twist, SARS tried to get the case thrown out by raising legal objections – saying Astron’s court papers were vague, confusing, and improperly constructed. But Judge Moosa wasn’t convinced. He dismissed SARS’ exceptions, clearing the path for a full trial.
Now, the legal showdown will focus on two key questions:
- Does Astron Energy really owe SARS R2.7 billion?
- Were the refund claims Astron submitted legitimately denied?
With billions on the line, the case could set the tone for how big corporates and SARS handle such high-stakes tax battles going forward.
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