The answer to this query is based on legislation as at2014/03/13.
Q: Can you
please give me information / pointers on how to go about in an ADR hearing. The client received a underestimation penalty on PAYE. The client was mostly in the field as an appointed a person to manage the
business, the client not being aware of what was done on the PAYE side. After
the audit all errors were immediately corrected and the person was released
from the firm. Yet I think that the client will have to admit being in
the wrong, what can I do to assist this client as this is one of the few that
always intends to do things right. The client is able to give proof that he
was not in the vicinity to check on what happened at the office as he was out
in the field.
A: As you
know, an ADR meeting is an informal meeting between SARS and the
taxpayer/representative. You have to state your case and have supporting
documents available to give your argument substance. The Commissioner may
exercise his discretion in this regard. You must also make mention that the
errors were immediately corrected and that you have furthermore taken the
necessary steps to ensure that your client is compliant in future, for
example a quarterly review of the payroll.
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.