You ensure that your new tax practitioner is registered with the relevant body
In July last year, we reported that in terms of the Tax Administration Act, tax practitioners must register with SARS to be compliant. We said this means your tax practitioner must be a member of a SARS-recognised controlling body.
The South African Institute of Professional Accountants (SAIPA) says following this directive many companies are hurriedly appointing new tax practitioners.
And this has brought to the fore the task of ensuring a smooth handover from one's previous tax practitioner.
In a statement, Faith Ngwenya, Technical and Standards Executive at SAIPA says 'time is money and there's no sense in wasting either when it comes to bringing a new tax professional on board.'
Ngwenya continues to say that to compile financial information properly, your tax professional requires a general understanding of the nature of your business transactions. The form of its accounting records and the accounting framework on which the financial information is to be presented.
Your practitioner needs all this info from you. This means you must brief him on the following...
The Employment Tax Incentive Act can help you:
SAIPA outlines key areas that new tax practitioner will need to be briefed
Before you new tax practitioner can provide your company with a comprehensive service, he needs to know the following:
#1: The size and complexity of your entity and its operations.
#2: The complexity of the applicable financial reporting framework.
#3: The entity's financial reporting obligations or requirements. This includes whether it exists under applicable laws and regulation or in the context of voluntary financial reporting arrangements, for example with third parties.
#4: The level of development of the entity's management and governance structure regarding management and oversight of the entity's accounting records. And financial reporting systems that underpin the preparation of financial information for financial reporting purposes.
#5: The degree of complexity of the entity's financial accounting and reporting systems.
#6: The level of development and proper design or relative sophistication of the entity's accounting systems and related controls.
Ngwenya says 'if you've taken time to choose an appropriate accredited tax professional, it's also worth investing enough time with them to ensure that they know your business almost as well as you do. Given time, the results will speak for themselves as your tax professional partners with you to provide the best possible advice and service to benefit your business.'
To make sure your tax practioner stay up to date with the yearly tax changes...get him a copy of the tax tables wall charts now.
Make sure you have the correct tax tables for the 2014/2015 tax year and avoid fines from SARS for not using the right tax rates.
Get your tax table wall charts now