SARS has just yesterday, 29 July, released Interpretation Note 132 which pertains to “Persons not eligible to register as a tax practitioner and deregistration of registered tax practitioners for tax non-compliance”.

This release, at the start of tax season, is a timely and well thought out one, and supports Commissioner Kieswetter’s comments earlier this year: “[w]e've identified 53 tax practitioners who remain non-compliant in their own taxes, which explains in part, how they advise their clients and why their clients are equally delinquent.”

Taxpayers should take note and do their due diligence before engaging with a Tax Practitioner. Herein lies a fundamental truth that not all tax professionals operate with integrity and compliance, both with respect to their personal tax affairs and those of their clients. SARS's most recent Interpretation Note serves as a sobering reminder of the risks associated with using a non-compliant tax practitioner. It also shows the commitment of SARS to address the issue of non-compliant tax practitioners and who must have their affairs in order; or they will lose their ability to earn a living as tax practitioners. The most vulnerable are however the innocent taxpayer who believes that their taxes are professionally handled, only to find out there is a problem when a “tax check” is done on them or SARS has taken money from their bank account.

Professor Keith Engel, CEO of the largest professional body dedicated to tax practitioners, the South African Institute of Taxation (“SAIT”), has availed himself to discuss the importance and relevance of SARS’ timely release. Please let me know your thoughts and if you would consider doing a piece hereon or if you would like to schedule an interview with Prof Keith Engel.

Submitted by Tax Consulting SA