SARS Advocates for eFiling: A New Era of Efficiency for Tax Practitioners

In a recent press release, the South African Revenue Service (SARS) has urged tax practitioners to make use of the Tax Practitioner’s Profile when assisting clients. This move is part of a broader effort to streamline tax administration and improve compliance.

The Power of the Tax Practitioner’s Profile

The Tax Practitioner’s Profile is a powerful tool that allows practitioners to activate multiple taxpayers against a single portfolio type, group taxpayers under the same portfolio type, and specify a descriptive name for each group. This functionality is aimed at making the process of managing multiple clients more efficient and user-friendly.

Registered eFilers can act in different roles on eFiling, referred to as Portfolio Types. These include Individual, Tax Practitioner, and Organisation. As of 1 July 2019, users only need one username and password to login to eFiling and can then choose the portfolio they want to access.

The Importance of Accurate Representation

SARS has emphasized that tax practitioners may only use their tax practitioner’s profile when assisting their clients. Using the taxpayer’s or organisation’s eFiling login details is considered a misrepresentation. This is a crucial point for those in the financial services sector, as it underscores the importance of accurate representation and the potential legal implications of misrepresentation.

Shared Access for Shared Responsibility

In a move that reflects the growing trend towards transparency and shared responsibility in the financial sector, SARS is encouraging tax practitioners to have shared access with their clients. This ensures accuracy and shared responsibility for any information submitted to SARS.

Updates and Amendments

The press release also provides updates on the PAYE Employer Reconciliation for 2023/2024, including changes to the validation rules for certain source codes. This is particularly relevant for those in the banking and lending sectors, who need to stay abreast of changes in tax regulations.

The Consequences of Non-Compliance

SARS has expressed concern about non-submission of returns by tax practitioners due to failure to de-register for tax types that are no longer applicable. This could lead to the de-registration of the tax practitioner due to non-compliance. This serves as a stark reminder of the importance of compliance in the financial services sector.

The Role of Technology in Tax Administration

The press release highlights the role of technology in tax administration, with a focus on the use of eFiling profiles. This is particularly relevant for Rateweb’s audience, who have a keen interest in the intersection of technology and finance.

In conclusion, the press release underscores the importance of using the Tax Practitioner’s Profile when assisting clients, the need for accurate representation, and the role of technology in tax administration. It serves as a reminder of the importance of staying up-to-date with changes in tax regulations and the potential consequences of non-compliance.