Court rules in favour of RAF against Sars R5.1bn deduction

THE Road Accident Fund (RAF) has emerged victorious in its legal battle against the South African Revenue Service (Sars), with the Gauteng Division of the High Court granting an interim interdict that prevents the tax authority from deducting R5.1 billion under contentious circumstances.

- DESIRE LEVY

The ruling underscores the early view that such deductions could financially jeopardise the RAF and potentially endanger the support it provides to vehicle accident victims across the country.

This legal confrontation stems from a dispute over RAF diesel refunds that Sars is allegedly obliged to pay to Eskom, following an agreement struck in October 2024 between the two entities.

The RAF contends that Sars’s plans make the levy deductions, prompting the RAF to warn of legal action if these actions proceeded without restriction.