Introduction: South Africa’s fiscal problem in a nutshell
In the history of South African tax, previous finance minister Trevor Manuel could perhaps be described as ‘a great batsman on an easy wicket. Somewhat like Jacques Kallis but never as dull as Kepler Wessels.’
Prior to 2008, driven by growth rates above 4% per annum South Africa’s tax engine was firing on all cylinders. The going was easy for Trevor Manuel. But South Africa’s national budget contained no contingency for the slowing of economic growth that emerged from 2011.
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.