SARS has implemented this amendment so that a mechanism is available, both to taxpayers and SARS, to address misconduct and to ensure that tax practitioners are appropriately qualified. Practitioners are also required to complete a professional compliance examination.
However, some relief is being offered to practitioners who register with the Institute of Accounting and Commerce (IAC), one of the controlling bodies recognised by SARS.
"Tax practitioners are being offered an exemption from the compliance examination until September and in its place can provide an affidavit stating which tax functions they currently perform for their clients," explains Eshaan Nagia, CEO of the IAC.
In addition to the exemption, once September rolls around, new applicants with the IAC will not have to sit for a written examination, as with other controlling bodies, but will rather do an oral one-on-one assessment with an evaluator who sets up an appointment at a time and place that suites the applicant. The results of the evaluation are given at the end of the assessment.
"As an institute we believe that written exams should be left behind at a university level and that once the applicant is in an experienced and qualified position it is more effective to conduct verbal assessments which extract more valuable content," says Nagia.
Nagia urges practitioners to register immediately and not delay in the hopes of a possible extension. "Despite fears of a bottleneck, to date no extension has been offered and so tax practitioners should ensure they apply to a SARS-approved controlling body immediately to avoid the risk of missing the cut-off and operating illegally."
"Businesses and individuals are being warned to beware of non-compliant tax practitioners and as the 7 July deadline for PAYE tax returns approaches, unregistered tax practitioners will not be able to file on behalf of their clients, and so run the risk of losing all of their business to registered competitors.
"In light of the warnings going out to South Africans about non-registered, and therefore non-compliant tax practitioners, the IAC will also be setting up a page on our website where the public can verify if a tax practitioner is registered with us. This allows IAC registered tax practitioners to be able to offer provable assurances that they are compliant," says Nagia.
The IAC was established in 1927 and remains a strong, effective and ethical organisation, as indicated by their selection as one of only five controlling bodies in SA.
The organisation is recognised by the South African Qualifications Authority (SAQA) as a professional membership body and registered members obtain a professional designation from SAQA and go onto the national learners database. IAC members are also offered the benefits of being kept up to date with all regulatory changes within the industry and are afforded access to cutting edge information and networking opportunities through the various seminars held throughout the year.
"The IAC Board will be holding a special meeting on 27 June to discuss and approve all applications for registration from tax practitioners and so we urge those that still need to submit their application to do so immediately," says Nagia.
For more information, go to www.iacsa.co.za.
