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Compliance FAQ

24 February 2015   (0 Comments)
Posted by: Author: SAIT Investigative Committee
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Author: SAIT Investigative Committee

Section 241(2)(a) of the Tax Administration Act (No. 28 of 2011) allows a senior SARS official to lodge a complaint with an RCB if a registered tax practitioner "…without exercising due diligence prepared or assisted in the preparation, approval or submission of any return, affidavit or other document relating to matters affecting the application of a tax Act”.  

But what is meant by the practice of due diligence? The Oxford Dictionary defines due diligence as the necessary steps that a reasonable person would take to avoid committing a tort or offence. Professionals adhere themselves to higher rules and standards of practice in order to not dilute the standards of their profession. To practice due diligence, tax practitioners must perform their duties to the best of their abilities and must be professional, honest, consistent and up to date with the most recent legislative changes. Tax practitioners would also be required to evaluate, to some extent, the accuracy of the information provided by the taxpayer.

The Institute developed the SA Tax Standards based on the due diligence requirement of section 241(2)(a) of the TAA. Tax practitioners are strongly advised to follow the Standards in all engagements to discharge their duty of practising due diligence.



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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