A critical comparison of tax practitioner legislation between South Africa and Australia

Abstract

Tax practitioners are highly influential in efforts to improve the overall tax compliance of taxpayers because of the significant role they play in the tax system. Although the concept of regulating tax practitioners has been much needed and is welcomed by business in South Africa, it is vitally important that clear guidelines and clarity are established in terms of who must register in terms of the Act; what qualifications/requirements must be met in order to qualify to apply for registration; and penalties and sanctions for non-registration/non-compliance on the part of the tax practitioner. Globalisation is increasing daily, as companies are trading more and more in the global arena, with many individuals working both locally and abroad. It is therefore important for South Africa’s tax practitioners to be regulated to ensure that they are in line with tax practitioners globally. After comment from the public in respect of the first draft of the Regulation of Tax Practitioners Bill, a revised draft was published for comment in 2008. To date, no further amendments have been made, nor has the draft bill been submitted to the Parliamentary Committees for approval and finalisation. Australia has successfully implemented a new legislative regime in respect of the regulation of tax practitioners and has issued useful guidance notes on the legislation. This provides a good benchmark to measure the South African legislation against. AFRIKAANS : Belasting praktisyns is hoogs invloedryke partye om die algehele belasting nakoming van belastingbetalers te verbeter, as gevolg van die belangrike rol wat hulle speel in die belasting sisteem. Hoewel die konsep van die regulering van belastingpraktisyns in Suid Afrika baie nodig is en verwelkom word deur besigheid, is dit uiters belangrik dat duidelike riglyne daar gestel word van wie moet registreer in terme van die Wet; watse kwalifikasies /vereistes nagekom moet word om te kwalifiseer om aansoek te kan doen vir registrasie; en boetes en sanksies kan gehef word vir die oortreding van die bogenoemde vereises vir die belasting praktisyn. Globalisering is aan die toeneem op 'n daaglikse basis soos maatskappye al hoe meer op die internationale speelveld handel, waar baie individue wat plaaslik en oorsee werk. Dit is dus belangrik dat Suid-Afrika se belasting praktisyns gereguleer word om te verseker dat hulle in ooreenstemming is met belasting praktisyns wêreldwyd. Na ontvangs van kommentaar van die publiek ten opsigte van die eerste konsep Regulation of Tax Practitioners Bill, ‘n hersiene konsep was gepubliseer in 2008 vir kommentaar. Tot op hede was geen verdere veranderings gemaak nie en die wetsontwerp was nog nie ingedien by die Parlementêre Komitees vir goedkeuring en afhandeling nie. Australia het ‘n nuwe wetgewing ten opsigte van die regulasies van belasting praktisyns suksesvol geimplimenteer en julle het hulpvaardige handleidings vir die wetgewing ook gepubliseer. Hierdie sal ‘n goeie maatstaf wees on die Suid Afrikaanse wetgewing teen te meet. Copyright 2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. Please cite as follows: Michaletos, SM 2011, A critical comparison of tax practitioner legislation between South Africa and Australia, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03082012-100345 / > F12/4/156/gm