Understanding the Requirements for Tax Practitioners in South Africa

Tax practitioners play a crucial role in guiding individuals and businesses through the complexities of tax legislation. In South Africa, the South African Revenue Service (SARS) and Recognised Controlling Bodies (RCBs) set stringent requirements for those wishing to register as tax practitioners. This article provides an overview of the relevant legislation and the requirements necessary for registration. According to Section 240(1) of the Tax Administration Act, any natural person who:

1. Provides advice on the application of a tax Act; or
2. Completes or assists in completing a tax return for another person,

must register with an RCB and SARS within 21 business days after first providing such advice or assistance. This requirement emphasizes the importance of professional oversight in tax-related activities.

Grounds for Deregistration

SARS may refuse to register or may deregister an individual as a tax practitioner under specific circumstances, including:

• Removal for Serious Misconduct: If the individual has been removed from a related profession by an RCB due to serious misconduct in the past five years.
• Criminal Convictions: Convictions for crimes such as theft, fraud, or serious tax offences within the last five years can disqualify an individual.
• Tax Non-Compliance: If the individual has not been tax compliant for at least six months in the preceding 12 months and fails to remedy this non-compliance within the specified period.

Additionally, if prosecution for a serious tax offence is underway, SARS can suspend registration until the case is resolved.

Requirements for Registration

Basic Registration Criteria

To register as a tax practitioner, individuals must meet the following educational and experience requirements:

• NQF Level 6 and above: At least one accounting module and one tax module, plus a minimum of one year of verifiable tax working experience.
• NQF Level 5: A minimum of four years of verifiable tax working experience.

These educational criteria ensure that practitioners possess the necessary knowledge to provide competent tax advice.

Continuous Professional Education (CPE)

Registered tax practitioners must adhere to ongoing education requirements, specifically:

• A minimum of 18 verifiable CPE hours annually, which should include:
• 10 hours of tax-specific training
• 2 hours of ethics training
• 6 hours related to services provided

This continuous education ensures practitioners stay updated on tax laws and ethical standards. An individual cannot maintain their registration if they have been tax non-compliant for an aggregate period of at least six months in the past year. They must also demonstrate compliance or remedy non-compliance within 21 business days of receiving notice from SARS.

Application Process for Registration

Individuals looking to register as tax practitioners must provide:

• Certificates of qualifications to verify educational background.
• Summary of working experience supported by testimonials from employers or clients.
• An independently verified criminal record check to ensure no serious misconduct.
• Proof of completion of the SARS Tax Practitioner Readiness programme with a minimum 90% pass mark .
• A letter of tax compliance status issued by SARS.
• A declaration confirming that the individual has not been removed from any RCB for serious misconduct.

Conclusion

Becoming a registered tax practitioner in South Africa is a structured process designed to ensure professionalism and compliance with tax laws. By adhering to the outlined legislative requirements and maintaining ongoing education and tax compliance, practitioners can effectively support their clients in navigating the complexities of the tax system. For those considering a career in this field, understanding these requirements is essential to establishing and maintaining a successful practice.

DISCLAIMER:

Nothing in this article and/or post should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure accuracy, Tax A Sured (Pty) Ltd does not accept any responsibility for consequences of decisions taken based on this article and/or post. It remains your own responsibility to consult the relevant primary resources when taking a decision.