Since the former Minister of Finance first announced the proposed regulation of tax practitioners in 2002, various models and comments have been tabled by stakeholders and practitioners which resulted in a second draft Tax Practitioner Bill released in 2007. In addition to the drive for regulation, the South African Institute of Tax Practitioners was established by the profession as the professional body in South Africa focusing solely on taxation.

Recently SAIT, SAIPA, SAICA and the LSSA had a round table meeting to explore alternative models for regulation. In broad terms it is currently recommended that the proposed model should provide for an accreditation model for professional bodies and other statutory entities. The stakeholders do not favour the creation of a statutory regulator that would regulate and provide services to tax practitioners as this would create a double layer and additional costs to practitioners. To facilitate the way forward, the stakeholders agreed that it will be more appropriate if independent research be conducted into the best model for regulating the tax profession, taking into account best practice in other professions within the South African context. This will ensure that both SARS and the profession are provided with a qualitative model that will benefit the profession, the Government and the country as a whole.

We trust this approach will be welcomed by SARS and National Treasury.

Yours truly,
Stiaan Klue
Chief Executive

In the recent case Maize Board v Epol (Pty) Ltd 71 SATC 236 the Durban High Court wrestled with the question whether the levies in question constituted ‘taxation’ for the purposes of s 11(a)(iii) of the Prescription Act 68 of 1969 and, in particular, whether the levies in issue were a tax and so subject to a 30-year prescription period.

GLOBALLY companies will be under pressure to disclose their tax strategies to tax authorities, according to draft accounting standards. “Companies may be compromising their tax secrets,” said Gisela Pieterse, a tax expert at Ernst & Young, at the firm’s annual Africa Tax conference in Kenya earlier this week.

SAIT, SAICA and SAIPA addressed a letter to Oupa Magashula, SARS Commissioner, on the proposed regulation of tax practitioners.

The 2009 Practitioners' Guide to EasyFile is now available.