The benefits of a group taxation system should be investigated.
Zweli Mabhoza, head of taxation services at SizweNtsalubaGobodo, says one of the reasons why group taxation - where legal entities within a group of companies are treated as one taxpayer - has been opposed in the past, is because South Africa does not have sufficient skills to support the introduction of such a complicated tax system.
The US as well as European countries like France and Germany permits group taxation subject to certain limitations.
But, says Mabhoza, some of the proposals in the recently published taxation amendment bills, introduce complications to the extent that the legislation is moving towards such complexity that criticism against the difficulty of a group tax system can no longer apply.
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.