ConCourt ruling expands GAAR reach and raises investor risk #financialnews

Added: 2026-05-06

[00:00:00]The Constitutional Court has given SARS  more scope in anti-avoidance disputes, in a ruling that could affect investors,  taxpayers, and financial institutions involved in complex funding structures. The court found that a  taxpayer can count as a “party” to a tax-avoidance arrangement even without full knowledge of how the  structure works. In the case, which involved Absa, this meant liability could extend beyond the  people who designed or fully understood every step of the transaction. Tax specialists  say the ruling changes how risk should be assessed in complex transactions. Participation  alone may now be enough to trigger scrutiny, and the lack of visibility into downstream  steps may no longer offer protection.