South African brothers and businessmen behind Devland Cash and Carry are facing a R1.9 billion ($118 million) tax dispute after the High Court ordered the South African Revenue Service (SARS) to disclose the full record underlying its decisions against the Johannesburg-based wholesaler.

The judgment, delivered on August 28, 2026, by the Gauteng Division of the High Court in Johannesburg, marks a procedural victory for Devland as it challenges SARS’ refusal to suspend payment of disputed corporate income tax and value-added tax assessments.

SARS ordered to disclose tax records

Devland was reassessed by SARS for approximately R1.9 billion ($118 million), including penalties and interest, following audits of its tax affairs. The company subsequently applied under Section 164 of the Tax Administration Act to suspend payment while challenging the assessments.

SARS rejected the request in February 2020, prompting Devland to approach the High Court. An interim order later prevented the tax authority from recovering the disputed amount while the litigation continued.

The latest proceedings focused on whether SARS had disclosed the complete record supporting its decision to refuse the payment suspension. Devland argued that documents previously provided were incomplete and sought access to internal assessments, risk analyses, committee minutes, forensic material and other evidence considered by SARS.

Tax authority alleges serious irregularities

SARS alleges that Devland deliberately evaded tax through several practices, including false statements in tax returns, false accounting records and improper refund claims.

The tax authority also alleged that the wholesaler used unsupported credit notes and journals to reduce income and output tax, repeatedly classified goods as zero-rated foodstuffs without sufficient details and failed to account for certain income.

SARS further alleged that some sales were recorded as exports to avoid declaring and paying output tax.

The court stressed that it was not determining whether the R1.9 billion ($118 million) assessment was correct. Instead, the issue was whether Devland was entitled to the information necessary to challenge the legality and rationality of SARS’ decision.

Court rejects SARS confidentiality argument

Devland, a fast-moving consumer goods (“FMCG”) wholesaler/grocery retail enterprise which operates through grocery retail stores across various locations in South Africa. For Devland and the Gathoo brothers, the judgment represents a significant procedural win, while the underlying tax dispute remains unresolved.

Justice Makume found that SARS could not rely on Section 68 of the Tax Administration Act, in the circumstances, to withhold documents forming part of the record required under Rule 53 of the Uniform Rules of Court. The court ordered SARS to disclose risk assessments, committee documents and minutes, forensic audit material, debt collection plans, management accounts, payment records and asset schedules.

The order also requires SARS to provide an audio recording or transcription of an October 15, 2019, committee meeting. SARS must deliver the complete record to the court registrar and Devland within 10 days of service of the order and pay the costs of the application.

The ruling does not cancel Devland’s R1.9 billion ($118 million) tax assessment or determine its ultimate liability. Instead, it gives the wholesaler access to the material underlying SARS’ decision, potentially strengthening its ongoing review proceedings.