Responsibilities of a Tax Practitioner in South Africa

As a registered tax practitioner in South Africa, your role is both critical and highly regulated. Your responsibilities span beyond simply submitting tax returns — you are a key player in upholding the integrity of the tax system, ensuring compliance on behalf of your clients, and maintaining professional conduct in accordance with the law and your recognised controlling body (RCB).

Tax practitioners in South Africa are required to be registered with the South African Revenue Service (SARS) and an RCB such as SAIT, SAICA, SAIBA, or others. This registration is not merely administrative; it affirms that you are considered a fit and proper person to carry out tax work, possess the necessary qualifications, and adhere to ethical and professional standards.

Maintaining Compliance and Professional Conduct

One of the most important obligations of a tax practitioner is to remain compliant with all relevant legislation, including the Tax Administration Act, 2011. You must remain up to date with tax laws, SARS administrative guidelines, and changes introduced by your RCB. This is not only a legal obligation, but it also ensures that your advice and actions are aligned with current practices, reducing the risk to both yourself and your clients.

Professional conduct includes acting honestly, with integrity, and in the best interest of your client — while still upholding your duty to SARS and the broader tax system. Confidentiality is also paramount. You are entrusted with sensitive financial and personal data, and it is your duty to safeguard this information unless disclosure is required by law.

Responsibilities Toward SARS

As an intermediary between the taxpayer and SARS, your responsibility to the revenue authority is significant. You are expected to submit accurate and complete information to SARS. This means thoroughly verifying information received from clients, maintaining proper records, and ensuring that all tax returns and supporting documents are prepared with diligence and honesty.

Moreover, tax practitioners must cooperate with SARS when lawfully required to do so. This includes responding to audits, verifications, or any other lawful requests made in the course of SARS performing its duties. You are also required to keep proper records for a minimum of five years, not just for your own accountability, but also to facilitate any future SARS engagements.

Responsibilities Toward Clients

In your dealings with clients, you serve as both an advisor and a representative. It is your duty to provide accurate tax advice, prepare correct filings, and represent your client honestly in their interactions with SARS. You must also secure proper written authorisation from each client (typically through a Power of Attorney) before acting on their behalf with SARS.

However, your duty to your client does not override your duty to the law and SARS. You are not permitted to knowingly assist a client in committing fraud, misrepresentation, or any other form of non-compliance. In fact, when you become aware that a client’s return or disclosure is incorrect, the law places you in a very sensitive position.

When a Client’s Return is Incorrect

If you become aware that a current return is inaccurate — whether due to omission, understatement of income, or overstatement of deductions — you are obligated to notify the client and advise them to rectify the issue or make a voluntary disclosure to SARS. If the client refuses to comply, you must not proceed with submitting the return, and you may have to withdraw from representing them altogether.

Submitting a return that you know to be incorrect exposes you to professional misconduct proceedings, potential deregistration, and in some cases, criminal liability. Practitioners must always act with due care, skill, and in line with both the Tax Administration Act and their professional code of conduct.

When You Discover a Client Has Submitted Inaccurate Returns in the Past

One of the more complex situations a tax practitioner may face is discovering that a client has submitted inaccurate returns in prior years — possibly before your involvement. In such cases, your responsibilities are clear, although they must be handled with care and professionalism.

Upon becoming aware of historical non-compliance, your obligation is to bring the matter to the client’s attention immediately and advise them of the potential risks, including penalties, interest, and the possibility of criminal prosecution. You must further recommend that they take remedial steps, such as submitting revised returns or making a voluntary disclosure under SARS’s Voluntary Disclosure Programme (VDP), if eligible.

You are not under a legal obligation to report the client to SARS unless there is an explicit legal requirement to do so (for instance, under money laundering legislation or where a subpoena is issued). However, you cannot ignore the issue or participate in any activity that could be interpreted as aiding or concealing the non-compliance.

If the client refuses to correct the previous inaccuracies, you should seriously reconsider continuing the professional relationship. Remaining involved, especially if the client is using your services to perpetuate the non-compliance, can expose you to reputational damage and disciplinary action by your RCB or SARS. In such instances, documenting your advice and the client’s response is crucial to protecting yourself.

In some cases, if you continue acting on the client’s behalf, SARS may infer that you are complicit in the prior non-compliance, even if you were not directly involved. Therefore, erring on the side of caution, professionalism, and legal compliance is essential.

Balancing Duty to Client and Law

Tax practitioners must continually balance the obligation to serve their clients with their overarching duty to SARS and the integrity of the tax system. Transparency, accuracy, and ethical conduct must form the foundation of every professional engagement. Where difficult situations arise — such as discovering inaccuracies in a client’s current or past returns — it is essential to take prompt, documented action and to protect both your client’s and your own legal interests.

Being a tax practitioner in South Africa is a position of trust that comes with a significant level of responsibility. Staying compliant, acting ethically, and being transparent with both SARS and your clients are not only requirements of your registration — they are essential to upholding your reputation and the long-term health of the South African tax system.