South Africa: Regulation On Way for Tax Advisers
Business Day (Johannesburg)
March 9, 2007
Posted to the web March 9, 2007
Sanchia Temkin
Johannesburg
Business Day (Johannesburg)
March 9, 2007
Posted to the web March 9, 2007
Sanchia Temkin
Johannesburg
TAX practitioners who uncover fraud and other tax irregularities related to their clients will be compelled to report them to a new independent regulatory board to be set up by government, according to draft legislation recently released by the South African Revenue Service (SARS).Under the Regulation of Tax Practitioners Bill, the tax practitioner and the client have 30 days within which to take steps to remedy the situation. Where the reportable irregularity is not rectified by the client, the tax adviser is compelled to send a written report to the regulatory board of tax practitioners, setting out details of the irregularity and forwarding a copy of the report to the client. Beric Croome, a tax director at Edward Nathan Sonnenbergs, said yesterday that it was unclear what the practitioner was required to do where clients approached an adviser with a view to regularising their tax affairs with SARS because of some prior violation of the tax laws, such as the non-submission of a particular return, or to correct a return. The bill creates an independent regulatory board for tax practitioners which will deal with the registration of tax advisers, and institute disciplinary proceedings against practitioners who do not comply with standards set by the board.
There are about 17000 tax practitioners registered with SARS. Ten members of the board will be appointed by the finance minister from people nominated by the general public. Only half of those members may be tax practitioners. The minister may also appoint officials from the treasury and an official from SARS as additional members of the board. The board will prescribe the standards of qualification and experience of tax practitioners and implement a code of conduct. As far back as 2002, Finance Minister Trevor Manuel indicated that tax practitioners would be regulated. There are no overall requirements, such as a code of conduct, that stop people from being tax practitioners. "It is in the interests of the public that tax advisers are subject to rules governing their conduct," said Croome.
There are about 17000 tax practitioners registered with SARS. Ten members of the board will be appointed by the finance minister from people nominated by the general public. Only half of those members may be tax practitioners. The minister may also appoint officials from the treasury and an official from SARS as additional members of the board. The board will prescribe the standards of qualification and experience of tax practitioners and implement a code of conduct. As far back as 2002, Finance Minister Trevor Manuel indicated that tax practitioners would be regulated. There are no overall requirements, such as a code of conduct, that stop people from being tax practitioners. "It is in the interests of the public that tax advisers are subject to rules governing their conduct," said Croome.
