SARS: Interpretation Note 132 re Tax Practitioners

SARS: Interpretation Note 132 re Tax Practitioners

• 27 August 2024
• SARS Issues
• South African Accounting Academy

This Note provides guidance on when, due to tax non-compliance, a person may not register as a tax practitioner, and when SARS must deregister a registered tax practitioner, as well as the period of non-qualification for registration – in line with Section 240(3)(d)  of the Tax Administration Act 28 of 2011.

Tax practitioners are urged to ensure that they check and maintain their personal tax compliance status to avoid their tax practitioner status being deactivated for 6 months.

Engage SARS if any support is required with compliance related matters.

The conclusion of this Interpretation Note is:

• Subject to specified exceptions, a natural person who provides advice on the application of a tax Act, or who completes or assists in completing a return on behalf of another person, must register with or fall under the jurisdiction of a recognised controlling body and must register with SARS, within the prescribed periods.
• Section 240(3)(d) prohibits registration as a tax practitioner and requires deregistration of a registered tax practitioner by SARS, if a prospective or registered tax practitioner has not been compliant for an aggregate of at least six months during the preceding 12-month period and has failed to demonstrate compliance or remedy the noncompliance within the period provided by SARS in a notice.

Annexure B contains 6 examples.

Click here to download the 10-page Interpretation Note:

https://www.sars.gov.za/wp-content/uploads/Legal/Notes/Legal-IntR-IN-132-Persons-not-eligible-to-register-as-a-tax-practitioner-and-deregistration-of-registered-tax-practitioners-for-tax-non-compliance.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Tax Administration Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• Tax practitioners play a critical role in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for tax practitioners to keep abreast of such changes, and also to ensure that they continue to meet their tax obligations.

Relevance to Your Clients:

• A tax practitioner has a duty to comply with the Tax Administration Act, otherwise they could be deregistered.
• As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for tax practitioner to continue to meet their tax obligations.

0 COMMENTS

LEAVE A COMMENT