Be cautious when selecting a tax practitioner

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"Government has promoted the concept that the public should only be assisted in their tax affairs by tax practitioners who operate with the expected knowledge and relevant ethics," Pieter Faber, project director for tax at the South African Institute of Chartered Accountants (SAICA), says.

In 2013, a new registration dispensation was introduced for tax practitioners requiring them to register with both SARS and a recognised controlling body (RCB) such as SAICA. However, only 18,000 practitioners registered in terms of this new dispensation - raising concerns that around 14,000 tax practitioners have now 'vanished' from the system. Some of those may still be practising as 'ghost practitioners' outside the ambit of the law.

Fake expenses

"Many of these 'ghost practitioners' operate on the basis of taking commission on any refunds. This results in an incentive to claim fake expenses to secure or overstate such refunds. In effect, they are perpetrating fraud on behalf of the unsuspecting taxpayer. The taxpayer will, however, remain liable to SARS for any tax that has to be repaid once the correct amount is assessed - and also face the arduous task of having to prove to SARS his or her innocence in any excessive claims made on their return," advises Faber.

The same risk applies to small businesses, trusts and commission earners who allow unqualified accountants to prepare financial statements and records on which their tax return submission is based.

Minimise the risks

Taxpayers are advised to follow the steps below to minimise their risks:

• Only use the services of a registered tax practitioner for preparing and assisting with your tax return by confirming their practitioner's number (PR number) and the RCB where he or she is registered.

• Verify the practitioner's registered status on www.sarsefiling.co.za (under the quick links drop-down menu) and insert the PR number. You can then verify that those details correspond to any identification details presented.

• Confirm with the relevant RCB if the practitioner is registered with them. This can be done online for SAICA members on our website at www.saica.co.za, or by contacting our call centre on 0861 072 422.

• It is advisable that taxpayers make use of SARS' eFiling system to submit their tax returns, rather than submitting manual forms, as it is easier for the taxpayer to track what is being submitted on their behalf. Taxpayers can also get shared access with their practitioner, which gives them complete control of the profile - including dismissing a tax practitioner from the profile, if necessary.

As a last resort, taxpayers who are in doubt about their tax affairs could make use of the assistance of SARS officials available at the SARS branches during filing season or access help on SARS eFiling by clicking on the Help-YOU-Efile icon while logged into their profile.