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Treasury wants nullification of Finance Act 2023 suspended

Treasury argues that the Court of Appeal erred by overturning its own precedents, undermining judicial consistency.

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by JACKTONE LAWI

Business02 August 2024 - 09:32

In Summary


  • •The Treasury warns that if the stay is not granted, the government risks a shutdown due to the lack of a current legal framework for revenue collection. 
  • •The absence of a legitimising Finance Act may lead to the cessation of essential public services, causing widespread dysfunction. 
Ruling

The National Treasury has filed an urgent appeal with the Supreme Court to temporarily halt the implementation of the Court of Appeal's decision declaring the Finance Act 2023 unconstitutional.

In its appeal, the Treasury argues that it is not logistically or practically feasible to immediately reconfigure state agencies and departments to revert to the Finance Act 2022 due to system and software requirements.

Treasury argues that implementing the 2022 tax regime requires significant updates to platforms and revenue collection systems, as well as detailed engagements with software providers, all of which necessitate time and resources.

"The invalidity of the Finance Act 2023 creates uncertainty in revenue collection and disrupts the government's ability to function efficiently," the National Treasury said in the appeal.

Additionally, the Treasury contends that the Court of Appeal erred by overturning its own precedents, undermining judicial consistency.

They argue that relying on the Finance Act 2022 for a subsequent fiscal year is legally invalid and undermines principles of governance and the rule of law.

This ruling, they say, creates a constitutional crisis by obstructing the government’s lawful revenue collection and fund allocation.

The Treasury warns that if the stay is not granted, the government risks a shutdown due to the lack of a current legal framework for revenue collection.

The absence of a legitimising Finance Act may lead to the cessation of essential public services, causing widespread dysfunction.

It further notes that without a stay, the government faces potential legal challenges, including claims for contempt of court due to the disruption in statutory financial operations.

"Without a stay, the government faces potential legal challenges, including claims for contempt of court due to the disruption in statutory financial operations," reads the appeal.


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