SARS Freezes Assets in Big Tax Case
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Case: CSARS v Adamjee and Others (2024/121210)
In a recent High Court battle, SARS recently went after a prominent local family and a group of 17 companies in a major tax investigation. Without warning, they got a court order to search properties, seize documents, and freeze assets. Why? They suspected serious tax dodging.
The Background
In October 2024, SARS got permission from the court to carry out a surprise raid. They believed the Adamjees were involved in large-scale tax non-compliance and wanted to act before evidence could be hidden or destroyed. They seized assets and appointed someone to manage them while they investigated. Most of the companies fought back in court. They said SARS didn’t follow the proper legal process and had no right to take their documents. They also wanted everything returned.
Then Came the Twist
Just before the court hearing in May 2025, both sides agreed to settle. Here’s what was decided:
SARS dropped the asset freeze orders for most of the companies and released their assets. Three companies didn’t challenge the order, so their assets stayed frozen.
SARS was required to process and finalise tax assessments for the respondents within a set timeframe. This provided the respondents with some procedural certainty on the way forward.
There were also agreed restrictions on dealings with the immovable properties owned by the respondent companies, while SARS concluded its tax assessments.
Because of the deal, the judge said there was no point in continuing the fight about the original court order. The case was basically closed, and the companies had to pay SARS’s legal costs.
Why This Matters for Us
This case is a clear warning: SARS is serious about tax compliance. They’re using strong legal powers to act quickly when they suspect wrongdoing, even freezing assets without notice.
If your clients have complicated structures or are behind on their taxes, they could be next. And once SARS shows up, it’s too late to fix things quietly.
What You Should Do Now
Make sure your clients are fully tax compliant.
Check that all their documents are in order.
Review any complicated structures that might raise red flags.
Don’t wait for SARS to make the first move.
This isn’t just a legal story. It’s a heads-up for every accountant. When SARS moves, they move fast — and they don’t miss.
