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Proposed Amendment To The Tax Administration Act 2011:Implications For Tax Practitioner Registration

19 July 2013   (3 Comments)
Posted by: Author: SARS Legal and Policy
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Author: SARS Legal and Policy

Further to our recent communique regarding the 1 July 2013 deadline for registration as a tax practitioner, we would like to draw your attention to the fact that an amendment is proposed in the Tax Administration Laws Amendment Bill, 2013, which will have implications for the registration of those acting as tax practitioners.

The Tax Administration Act requires tax practitioners who provide tax advice or complete returns for payment to be registered with a Recognised Controlling Body and with SARS by 1 July 2013. The Act provides for certain exceptions when persons who provide tax advice or complete returns need no register as a tax practitioner. These exceptions are included under section 240(2) of the Tax Administration Act, and include persons who perform these functions under the direct supervision of a person who is a registered tax practitioner.

The amendment to section 240(2) proposes to replace direct supervision with the concept of acceptance of accountability. This amendment is proposed in clause 68 of the Tax Administration Laws Amendment Bill, 2013, published for public comment in 5 July 2013. Under the current wording of section 240(2) of the Tax Administration Act, the result of using the concept direct supervision according to the industry is that "intermediate managers” between trainees or articled clerks, for example, and a partner or director must also register as tax practitioners.

In view of the arguable adverse practical implications thereof, the amendment to replace direct supervision with the concept of acceptance of accountability is proposed. This will require the partner or director who is a registered tax practitioner, to accept accountability for the actions of both the intermediate manager and the trainees or articled clerks, for example, for purposes of complaints by taxpayers or SARS to the relevant Recognised Controlling Body.

As it is not a certainty that Parliament will accept the proposed amendment, SARS will not lay complaints or charges for the period after 1 July 2013 if the amendment is not accepted and a person otherwise required to register as a tax practitioner by 1 July 2013 did not do so in anticipation of the outcome of the proposed legislation, if SARS is satisfied that the failure to register was bona fide and solely for this reason.

We do understand that the deadline of 1 July 2013 and the uncertainty regarding the proposed amendment placed the industry in a difficult position and we will keep you updated as to the outcome of the proposed amendment. Any queries about the registration as a tax practitioner can be directed to SARS Practitioners Contact Centre on 0860 12 12 19.

Issued on behalf of the Commissioner for the South African Revenue Service

Comments...

Lucia G. Bowker (Chadinha) says...
Posted 25 July 2013
I agree that to be a professional you need to be registered with affiliated bodies and to keep up to date with tax laws and accounting practices. Lucia Bowker
Ronica Pillay says...
Posted 24 July 2013
This is definitely true because, some tax practitioners who are not affiliated to any controlling body, they are submitting returns to SARs
Maqhinga M. Duma says...
Posted 23 July 2013
Sars has failed to do the followup after 1 July as results there people who working as taxpractitioners with affiliation to any controlling body,they are submitting the returns on behalf of clients while they are not taxpractitioners ,their old practice number does stll work,and nothing has been done by sars

WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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