Accounting Weekly

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Taxpayers Are Warned Regarding Using ‘Fake’ Tax Practitioners

Taxpayers need to be vigilant as a scam involving fake tax practitioners has become more prevalent. These fake tax practitioners, known as ‘ghost consultants,’ take taxpayers' money with the promise to handle tax affairs but then vanish, leaving clients with unresolved tax issues and debts owed to South African Revenue Service (SARS).

Taxpayers often discover the fraud too late—when they cannot obtain a tax clearance certificate or when SARS begins deducting money from their accounts to cover unpaid taxes and facing potential penalties. Importantly, using a fraudulent tax practitioner does not absolve taxpayers of their responsibilities; they remain fully accountable for their tax affairs.

With the 2024 Tax Filing Season underway, the risk of falling victim to these scams is heightened. SARS and tax professionals are urging taxpayers to be vigilant and verify the credentials of any tax practitioner they hire.

To protect yourself, it’s crucial to request proof that your tax practitioner is:

  1. Is registered with SARS as a tax practitioner with

  2. Is registered with a recognised controlling body such as CIBA in good standing, and

  3. Has a clear tax compliance status.

By taking proactive steps and remaining vigilant, you can avoid falling victim to these scams and ensure your tax affairs are in order.

Tax practitioners should be aware of their tax compliance requirements as per the guide issued by SARS. Read our article on these requirements here.