Tax practitioners can no longer register clients for initial (income tax) registration
09 December 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: We visited a
SARS branch this morning in order to register a trust for income tax. We do
have a signed power of attorney from the trustee. We tried to submit the
documentation the previous week but were sent back with a request for further
information. Today we were told that all the documentation is in order but that
the rules changed and now the representative tax payer must be present.
Our clerk returned to the office and we phoned the SARS
practitioner call centre to enquire about this new rule. The SARS official
confirmed telephonically that for ALL registrations, including VAT, PAYE, Tax,
the representative tax payers will have to be present and that this rule became
effective approximately a week ago. We have not received any communication in
this regard. No CEO of a company, being the representative tax payer, will be
willing to sit in a queue for hours at SARS and be sent back a couple of times.
SARS is making it more and more difficult to be tax compliant.
Can you please assist?
A: We agree that
it is becoming more difficult to be tax compliant.
We can confirm, however, that with regards to a taxpayer’s
initial registration (i.e. for income tax), SARS has required that the public
officer/representative taxpayer/trustee come into the branch for the entity
they represent to be registered. Subsequent registrations for taxes such as
PAYE and VAT can thereafter be effected via efiling.
Tax practitioners can no longer do the initial income tax
registration at a SARS branch without the representative taxpayer being
present. This began around June earlier this year. We even passed on a notice
SARS had sent to our members confirming this a few months ago. It was at that
time when we began to get a lot of complaints about that new rule.
Please see here for the notice: http://c.ymcdn.com/sites/sait.site-ym.com/resource/resmgr/2014_SARS_-_June_/Single_registration_system.pdf
I am rather surprised by the SARS official’s incorrect
information. This has been their practice for quite a few months already.
You can also click here to see the SARS website for what can
or can’t be done by a tax practitioner at a SARS branch.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a