South African businesses should not treat unresolved tax debt as an issue that can simply be dealt with later. A High Court judgment published by SARS on 28 October 2026 records that a curator was authorised to sell five properties subject to a preservation order, with the proceeds to be held in an interest-bearing trust account while SARS pursued further legal action. The judgment itself was delivered on 26 October 2026. SARS summarised the matter, while the full High Court judgment is available on SAFLII.

What the judgment decided

The case concerned property placed under a preservation order in the context of unpaid tax liabilities involving individuals and companies. SARS argued that the properties were deteriorating in value and that ongoing insurance, municipal, security and curator costs were reducing the value of the assets.

The court accepted that the properties could be sold before the proposed execution proceedings were concluded. The proceeds were to remain under controlled arrangements pending the next stage of the legal process. This was not a general authorisation for SARS to sell any company asset without due process. It was a case-specific order involving a preservation arrangement, judicial oversight and the facts placed before the court.

Why finance teams should take notice

The practical lesson is that tax exposure can affect more than a company’s bank account. Where SARS alleges significant unpaid tax and believes assets may be at risk of dissipation or value loss, the consequences can extend to property, investment structures and related entities.

Businesses should also remember that the legal ownership of an asset is only one part of the risk assessment. Finance teams need to understand which entities own property, which entities use it, how intercompany funding is documented and whether group transactions can be explained from the accounting records.

Controls businesses should review

  • Tax-debt visibility: maintain a current schedule of outstanding assessments, payment arrangements, disputes, penalties and interest.
  • Asset registers: reconcile the fixed-asset register to the accounting ledger, title records, insurance schedules and supporting purchase documents.
  • Entity ownership: document which company, trust or individual owns each significant asset and how that ownership is reflected in the financial statements.
  • Intercompany balances: review loans, payments made on behalf of related entities and asset-use arrangements for complete agreements and appropriate accounting treatment.
  • Tax correspondence: escalate SARS notices, demands and requests for information promptly rather than allowing them to remain with an individual employee or service provider.

Practical next steps for SMEs

Directors and finance managers should ask for a short tax-risk report before the next management meeting. It should show outstanding tax balances, disputed amounts, upcoming obligations, affected entities and the supporting evidence available for major assets.

If a business cannot settle a tax liability in full, it should obtain professional advice early and investigate the available dispute-resolution or payment options. The objective is not to assume that every tax dispute will lead to asset preservation, but to ensure that the business can demonstrate accurate records, authorised transactions and a credible response to SARS.

For broader support with accounting records, tax compliance and financial controls, businesses can explore Your Financial Partner’s services.