Knowledge on tax key to ensuring compliance


According to the South African Institute of Professional Accountants, there was also need to impart knowledge on tax requirements to up the level of tax compliance, a new report revealed.

(READ MORESARS records growth in tax compliance levels)

“The study confirms the fact that tax practitioners play an important role in influencing the behaviour and attitude of their clients on tax compliance, and vice versa,” says Economic Research Analyst for SAIPA, Thomas Höppli.


“Given the increasing utilisation of tax practitioners in South Africa, it is important for both tax practitioners and taxpayers to understand the factors that drive taxpayers’ and tax practitioners’ behaviour in order to improve the relationship between them,” added Höppli.

According to the report, the number of South Africans using the services of tax practitioners is on the increase.

The study also questioned exactly how much non-compliance to tax laws is related to the tax advice that some tax practitioners give to their clients is still unclear.

The report urged frequent and clear communication as necessary before, during, and after the tax service engagement between the taxpayer and tax practitioner.

“Ongoing communication helps to clear up any issues that may arise between the two parties and promotes greater tax compliance,” he says. 

SAIPA added that the capabilities of both taxpayers and tax practitioners should constantly be improved.

(READ MORE: Government, business must encourage tax compliance)

“This can be achieved by improving taxpayers’ knowledge on basic tax matters in order for them to understand tax processes better, as well as by improving tax practitioners’ competence,” said SAIPA.

“To this end, SAIPA’s Centre for Tax Excellence (CoTE) offers a variety of specialised tax CPDs to keep their members abreast of new information and developments in the tax discipline.”