When is an individual eligible to register as a tax practitioner at a controlling body like SAIT?
- At what point can a student or qualified individual register as a tax practitioner?
- What are the requirements to register as a tax practitioner?
- What is the earliest in an individual’s life they can register as a tax practitioner?
- At what point does a student become aware of the requirement to register as a tax practitioner at a controlling body? At school, at a tertiary institution or when they receive their first pay check? Are there any marketing surrounding the requirement to register as a tax practitioner?
Thank you in advance.
Good day Claytondeo.
Section 240 of the Tax Administration Act (the TAA) deals with the registration of tax practitioners.
First of all, one should point out that not registering as a tax practitioner, if you are supposed to, is a criminal offence in terms of section 234(1)(c) of the TAA.
S240(1) paints a broad brush regarding who must register as a practitioner. It states:
“Every natural person who provides advice to another person with respect to the application of a tax Act; or completes or assists in completing a return by another person, must
(i) register with or fall under the jurisdiction of a ‘recognised controlling body’ by the later of 1 July 2013 or 21 business days after the date on which that person for the first time provides the advice or completes or assists in completing the return; and
(ii) register with SARS as a tax practitioner in the prescribed form and manner, within 21 business days after the date on which that person for the first time provides the advice or completes or assists in completing the return.”
From this group, however, certain individuals do not have register with SARS and the recognised controlling body. This is laid out in section 240(2) of the TAA. The list includes:
- Those who provide tax advice or complete returns for free.
- Those who provide tax advice or complete returns under the supervision of a registered tax practitioner.
- Those who provide tax advice or complete returns to or in respect of either an employer by whom that person is employed on a full-time basis, or connected persons in relation to that employer.
- Those who provide tax advice as a minor part of their provision of goods or services to other people.
Registration is thus not necessarily a question of age, but depends on whether you fall within the provisions of section 240(1), and out of section 240(2).
If you’d like to register with the South African Institute of Tax Professionals (SAIT), you can click on the following link for more details: http://www.thesait.org.za/?page=Tax_designations .
If you’re not registered with both SARS and a recognised controlling body, then you will be deemed to be a tax preparer and you would:
- not be able to submit ITR12 returns on behalf of a client/taxpayer
- not be able to submit or amend registration details on behalf of a client/taxpayer
- be able to prepare and save the return on e-Filing, but will not be able to submit it