Poulter vs SARS: Taxpayer’s Right to Non-Legal Representation

Case Information

• Court: High Court of South Africa, Western Cape Division, Cape Town
• Applicant: Candice-Jean Poulter
• Defendant: The Commissioner for the South African Revenue Service (SARS)
• Judgment Date: 28 June 2024

In the landmark case of Poulter v Commissioner for the South African Revenue Service [2024] 2 All SA 876 (WCC), the Western Cape High Court clarified an essential aspect of taxpayers’ rights in South Africa. This case revolved around whether a taxpayer can be represented by a non-legal practitioner in the Tax Court, significantly impacting how taxpayers can defend themselves in tax-related disputes.

Background and Key Facts

The case emerged when the Tax Court confirmed the appellant’s taxable income assessment for 2018 and ordered her to cover the Commissioner’s legal costs. The appellant, however, contested this decision on the grounds that the Tax Court had issued its orders without hearing her or her authorized representative, her father, Mr. Van der Merwe. Notably, Mr. Van der Merwe was barred from representing her because he was not a qualified legal practitioner.

The Legal Challenge

The appellant argued that the Tax Court made a critical error by denying her father the right to represent her. She also contended that the court’s decision was akin to a “default judgment,” rendered without considering the evidence she wished to present.

Court’s Analysis and Decision

The High Court’s analysis focused on section 33 of the Legal Practice Act 28 of 2014, which generally restricts non-legal practitioners from appearing in “courts of law.” However, the court carefully examined the nature of the Tax Court under the Tax Administration Act 28 of 2011. The court determined that the Tax Court operates as an administrative tribunal rather than a “court of law” as defined by section 166 of the Constitution.

Implications of the Ruling

Given this distinction, the High Court ruled that the prohibition against non-legal practitioners does not apply to the Tax Court. Therefore, a taxpayer has the right to be represented by a non-legal practitioner, ensuring that individuals can access broader representation options in tax disputes.

Conclusion

The appeal was successful, with the High Court confirming that the Tax Court had erred in its decision. This ruling underscores the right of taxpayers to be represented by laypersons in the Tax Court, which is crucial for ensuring fairness and accessibility in tax-related legal processes.