Q: Could you please advise me for trusts and companies,
is there a directive or legal obligation that states an accountant must draw up
financial statements and compile the tax return?
The obligation to draft financial statements and
who may approve and audit/review them is an obligation imposed by the Companies
Act 2008 and for Trusts as per the regulations imposed by the Master of the
High Court in terms of the Trust Property Control Act.
tax Acts do not prescribe a specific person to draw up the require books and
accounts that need to be retained as these are done in terms of other
legislation. The Tax Administration Act ("TAA”) also does not compel that an
accountant must complete the tax return as this can be done by the taxpayer as
well. However where a person is assisting in completing or submitting the tax
return that is not the taxpayer then such person must be a registered tax
practitioner in terms of section 240 of the TAA.
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 decision.
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.
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