Tax practitioners to be regulated

Government will this year introduce laws to regulate the tax advisory services in the country.

The new regulations would hold tax practitioners accountable for the advice they give to taxpayers and also rid the industry of rogue practitioners.

The regulatory framework would obligate practitioners to register with a regulatory body before July.

Those who failed to do so would face legal action.

The Tax advisory regulations came after the promulgation of the Tax Administration Amendment Act at the end of 2012.

All practitioners would be obliged to be members of organisations such as the Independent Regulatory Board of Auditors, SA Legal Practice Council, Institute for Tax Practitioners, SA Institute of Chartered Accountants or SA Institute of Professional Accountants.

While the state’s intention was to hold tax practitioners accountable, it was suspected in the tax advisory industry that the regulations were aimed at keeping those in highly sophisticated tax avoidance schemes in check.