Court rules in Sasfin’s favour on SARS claim

Sasfin welcomes the recent judgment by the South African courts in relation to the SARS’s damages claims, which were brought against Sasfin Bank in connection with alleged unclaimed taxes from former clients.

The Court ruled in Sasfin’s favour on the two principal claims, amounting to circa R4.9 billion, finding them to be unsustainable in law. SARS was also ordered to pay Sasfin’s legal costs. The Court ruled that a third lesser alternative claim of R479 million (i.e., less than 10% of SARS’s initial claim), which constitutes a sub-set of the first claim, could proceed to trial.  Sasfin and its legal team remain confident that this remaining claim has almost no prospects of success.

The damages claims arose from alleged contraventions in Sasfin Bank’s former foreign exchange business. Sasfin had already undertaken a comprehensive independent forensic investigation, self-identified irregularities, and proactively reported all relevant information to regulators.  The business also laid criminal charges against all implicated former rogue staff and clients.

These findings reaffirm Sasfin’s position that SARS’s claims lacked legal merit.  Sasfin remains committed to acting transparently and with integrity, demonstrating strong and ethical governance, and doing the right thing for its clients, shareholders, and the broader financial system.