Tax advisers to be compelled to report errant clients

Under the Regulation of Tax Practitioners Bill, the tax practitioner and the client have 30 days within which to take steps to remedy the situation, notes a Business Day report. When the reportable irregularity is not rectified by the client, the tax adviser is compelled to send a written report to the regulatory board of tax practitioners, setting out details of the irregularity and forwarding a copy of the report to the client. Beric Croome, a tax director at Edward Nathan Sonnenberg, said yesterday it was unclear what the practitioner was required to do where clients approached the adviser with a view to regularising their tax affairs with SARS because of some prior violation of the tax laws, such as non-submission of a particular return, or to correct a return. Full Business Day report Draft Regulation of Tax Practitioners Bill available on the SARS’ site