CAN SAICA MEMBERS REGISTER A PRIVATE COMPANY TO PERFORM SERVICES AS A TAX PRACTITIONER

CAN SAICA MEMBERS REGISTER A PRIVATE COMPANY TO PERFORM SERVICES AS A TAX PRACTITIONER

The regulation of tax practitioners is done in terms of Chapter 18 of the Tax Administration Act, no 28 of 2011 (TAA). The TAA compels natural persons, who for a fee completes or assist in completing returns or provide advice on a tax Act, to register with both SARS and a Recognised Controlling Body (RCB). Certain exclusions exist for employees under supervision and control and incidental tax services. A RCB is a professional body approved by SARS and currently includes SAICA. The registration of a tax practitioner is linked to the individual and currently an entity cannot register as a tax practitioner. Services rendered as a tax practitioner would then have to be rendered to taxpayers on behalf of a professional service company as an independent contractor, employee or office holder. 

SAICA members are requested to consider the above when setting up a new private company or other type of entity to ensure that they meet the requirements of relevant legislation with respect to providing certain types of professional services, including the capacity in which they will be providing those services. 

Reference: 

Small and Medium Practice Newsletter – 1st Quarter 2016