Extremely Important Information Regarding the Regulation of Tax Practitioners

Author: Chris van Dyk

Set-out below you will find extremely important information regarding the regulation of tax practitioners. 

Updating of registered tax practitioners' details with SARS

SARS requires that all individuals previously registered as tax practitioners update their personal details on eFiling before 1 July 2013 (click here for further information). In addition, it is compulsory for SARS ‘registered tax practitioners’ to record their professional membership to a 'recognised controlling body' during this update. However, SAIT members (existing and new applicants) are alerted to the fact that a SAIT membership number does not guarantee compliance with the SARS registration requirements, as the Institute has various membership categories. 

Status of SAIT and membership levels

SAIT is a ‘recognised controlling body’ under the Tax Administration Act, 2011 ('TAA'). 

It is important to note that the following membership categories are accredited for the purposes of and mandate to practice as a 'registered tax practitioner' under the scope and jurisdiction of SAIT:

• Tax Technician (SA)
• General Tax Practitioner (SA)
• Master Tax Practitioner (SA)

New scope of regulation and SARS registration requirements 

Please note that all staff in your firm, from managerial to partner level, are required to register as tax practitioners under the TAA. This new requirement has been confirmed with SARS Legal & Policy and is effective 1 July 2013. 

The impact of this is that clients will remain registered under the eFiling profile of the firm. However, a staff member who file a tax return without the explicit direct supervision of the partner, will record his/her tax practitioner number on the applicable tax return. The exemption from registration as a registered ax practitioner is not applicable to a firm providing services in tax. 

Note that the question of what constitutes direct supervision is a matter of professional judgment and subject to the firm's review and risk policy. For further information in this regard, kindly submit your specific details and questions further for guidance on this requirement to technical@thesait.org.za. 

SAIT deadline: 30 June 2013

The Institute, as a ‘recognised controlling body’, has a duty to enforce the statutory obligations imposed on it under the TAA. 

In order to update your details with SARS or register as a tax practitioner with SARS, SAIT members (existing and new applicants) who practice as a ‘registered tax practitioner’ under the jurisdiction of SAIT, are required to follow the following compulsory internal process before 30 June 2013.

Failing to update this important professional information and providing supporting evidence, will result in SAIT not confirming your SAIT tax practitioner membership with SARS on 1 July 2013, and you may therefore be de-registered by SARS as a 'registered tax practitioner' under the TAA on 1 July 2013. 

It is in your interest to regularly update your personal details with SAIT as per the steps set out below. In addition, SAIT 'registered tax practitioner' members must perform these update steps annually on or before 30 June. 

Compulsory internal process

(to be completed by all existing and new members before 30 June 2013)

Step 1:

All members must sign-on to their online membership profiles here. Access your profile under "My SAIT Profile”. Click on "Manage Profile”, and then under Information & Settings click on "Edit Bio”. 

Step 2:

All members must update all personal, contact, professional, employment and other details under the "Edit Bio” tab, including the confirmation questions such as whether members are tax compliant or have criminal records. 

Step 3:

All SAIT 'registered tax practitioner' members who have failed to upload proof of tax compliance (in their personal capacity, and not their firm), are required to upload their individual tax clearance certificate before 30 June 2013. Click here to upload your tax clearance certificate.

Please note that the Institute will consider mitigating and extenuating circumstances for not obtaining a tax clearance certificate by allowing a grace period for obtaining a valid tax clearance.

Step 4:

All members are required to update their CPD activities (hours) for the preceding three years here. If no, or less than 60 hours of verifiable CPD activities have been obtained in the preceding three years, then members who wish to practice as a ‘registered tax practitioner’ under the SAIT jurisdiction after 1 July 2013, must complete the online CPD competency assessment here.

Once all the above steps have been completed, you can rest assured that SAIT will attend to the relevant confirmation of your membership in good standing with SARS, unless we contact you in writing. 

We trust that this verification process will ensure smooth transition to the new regulatory regime commencing on 1 July 2013. 

Please note that the SAIT management team will do a national information and roadshow session during July/August to empower SAIT registered tax practitioner members in complying with the new requirements under the Tax Administration Act, 2011 (as amended). Further information to follow.