Be aware of unregistered tax advisors
Tax practitioners who provide taxpayers with advice or complete tax returns must be registered with a controlling body and Sars if they want to be recognised under the new Tax Administration Act.
Unregistered tax advisers who fail to do so are guilty of a criminal offence.
We advise that taxpayers ensure that their tax advisers are registered with Sars and with a controlling body, or else they may face administrative penalties.
The websites of the controlling bodies are equipped with a members page, where the taxpayer can verify the credentials of the tax advisor.
Sars is closing the e-filing profiles of all unregistered tax practitioners if it is found that they do not have the necessary qualifications.
This will shield taxpayers from unprofessional conduct by tax practitioners, which could potentially put both their funds and reputations at risk.
The new regulations aim to hold tax practitioners accountable for the advice they give to taxpayers, and also to rid the industry of rogue practitioners.
The Act requires tax practitioners to register with one of the five controlling bodies. It also gives more teeth to these bodies, allowing them to take disciplinary action against practitioners who contravene the controlling body’s rules of conduct.
The new legislation also addresses minimum professional qualifications and continuing professional education requirements to be fulfilled by tax practitioners.
Tax advisers with a Grade 10 qualification will not be admitted as tax practitioners at all.
Controlling bodies can now enforce minimum qualifications and continuing educational requirements, ensuring that the taxpaying public is no longer at the mercy of practitioners who are not up to speed with the latest developments.
Taxpayers will now have the comfort of knowing that their tax advisers meet minimum standards, undertake continuing professional education and are subject to a disciplinary code.
The negative is that highly experienced and qualified tax practitioners may not be able to practice legally unless they comply with the requirements of a controlling body to which they are required to belong.
Some taxpayers may suddenly find they can no longer use the tax practitioners they have used and been comfortable with for many years.
Practitioners who have taken chances and who have presented themselves as competent tax practitioners (when, in fact, they are not) to the public – they will disappear out of the system.
Accounting bodies have welcomed the legislation, saying that the tax profession is regulated as from July 2013, like other professions (lawyers, estate agents and insurance brokers ).
All members/directors of CCs and companies who are giving tax advice ( payroll, bookkeeping and tax advice) should register individually.
Johan Vosloo can be contacted on 011-918 5958/3321 and is a professional accountant from Vosloo and Associates, in Boksburg, with a B. Com (Hons) and M. Com (Financial Management).
