When money is tight, as it is currently, there are people seeking to earn extra income as “tax practitioners”. This despite their lack of training and experience. Some of these people are aiming to use their so-called expertise to defraud the SA Revenue Service (SARS) and/or you as a client.

Whenever you seek financial advice of any description, we strongly suggest hiring a highly skilled person of good repute. Especially when it comes to preparing your tax return.

Top 6 signs of an unreliable tax practitioner

  1. Quick promises: The tax practitioner or consultant is quick to promise refunds or compile returns without looking at underlying documentation. You must report this illegal practice to SARS. Refund claims and deductions must be justified.
  2. Fees: They charge fees that are wholly or partially based on percentages of promised refunds. This arrangement often creates the wrong incentive to inflate or falsify refunds. The final responsibility rests squarely on you.
  3. They often do not sign returns because they lack legal status. A tax preparer’s signature shows they are willing to stand by their return. The person must be registered with SARS as a tax practitioner via a recognised industry body (see section 240 of the Tax Administration Act). The South African Institute of Tax is the only recognised controlling body dedicated solely to tax. There are other professional bodies such as the Southern African Institute for Business Accountants that also provide tax assistance.
  4. Lack of experience. SAIT members must have a minimum of three years of tax experience (if they have a degree). Members without a degree must have five years of experience. In addition, they must provide SAIT with a logbook of practical experience. Other professional bodies have their own requirements that also meet SARS standards of expertise.
  5. The tax practitioner or consultant may ask for cash to resolve a dispute with one of their “friends” inside SARS. This offer may sound tempting. However, it could just as easily be part of a scam. Even if the person does have someone on the inside, this is illegal and that “friend” and you are liable. The “practitioner” will disappear, guaranteed!
  6. “Practitioners” will not be able to help you in the case of an audit. This is because they either don’t know how, don’t have the authority to, and/or have falsified information.

In short, don’t cheat the system. The “cheaters” will more than likely leave you facing SARS criminal penalties.

How to verify a tax practitioner’s status

  1. Obtain their practitioner registration number
  2. Verify their practitioner registration on the SARS website (https://secure.sarsefiling.co.za/TaxPractitionerQuery.aspx) or with their stated professional body. SAIT verification can be found using this link: http://sait.site-ym.com/search/

Bruce Laister, the managing director of BC Accounting Services, has a university degree (BCompt UNISA). He is a registered SAIT member, a registered SARS tax practitioner and is a SAIBA member

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