High Court grants SARS application against LTC

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The ruling suspends the performance of any further debt collection services by LTC in terms of the master service agreement or service request agreement.

On 20 October 2016, SARS announced that urgent High Court proceedings had been instituted against LTC.

“The High Court proceedings arises from LTC’s failure to disclose in its bid to be appointed to SARS’ panel of debt collection service providers, that one of its directors had a family relationship with the Commissioner of SARS.

“SARS regards this failure as a material irregularity and views it in a serious light,” said SARS in a statement.

In its urgent application SARS sought to interdict LTC from performing any further services under the master service agreement and service request agreement entered into between SARS and LTC.

LTC opposed SARS’ application.

The urgent application was heard in the North Gauteng High Court on Wednesday, 16 November.

The High Court ordered that LTC, with effect from 18 November 2016, may not take any further steps to implement the Master Service Agreement or Service Request Agreement.

In addition, LTC was ordered to return all confidential taxpayer information to SARS.

“The successful outcome of [Wednesday’s] urgent High Court proceedings is in the best interest of the public and underscores SARS’ dedication to the rule of law.

“The application and the court order obtained is testimony to SARS’ commitment to its Constitutional obligation of ensuring that procurement processes take place in accordance with a system that is fair, equitable, transparent, competitive and cost-effective,” said the revenue service.

In addition, to obtaining the urgent interdict against LTC, SARS is continuing with an application to set aside LTC’s appointment to SARS’ panel of debt collection service providers.