Many taxpayers continue to use the services of unofficial or unverified 'tax consultants' for filing returns and resolving issues with SARS. This choice can expose you to risks of fraud, improper use of personal data, missed refunds, and long-term damage to tax compliance. In the worst-case scenarios, the liability remains with the taxpayer, while the consultant disappears and cannot be held accountable.
Requirements for Tax Specialists Registration
SARS clarifies that according to Section 240(1) of the Tax Administration Act, any natural person providing tax advice for remuneration or assisting in filling out a return for another person is required to register with SARS as a tax consultant and be registered with (or under the jurisdiction of) a Recognized Controlling Body (RCB) within 21 working days after the first provision of advice or assistance in completing the return.
SARS also notes that the dual registration system maintains minimum standards for admission and maintenance of tax consultant status. These standards include requirements for minimum qualification and experience, criminal record checks, expectations of Continuing Professional Education (CPE), and tax compliance checks. According to SARS external guidance GEN-GEN-59-G01, effective from April 20, 2026.
SAIT strongly recommends that all tax consultants monitor SARS requirements and carefully study the latest SARS external guidance to timely understand and meet compliance requirements, including any verification steps.
What is a Registered Tax Consultant
It is important to understand that a registered tax consultant does not possess magical powers; they cannot make SARS ignore the law or create outcomes that are not supported by facts and law. Their primary function is to assist taxpayers in complying with requirements by applying specialized knowledge to interpret rules, prepare accurate submissions, and guide clients through SARS processes in a lawful and defensible manner.
Registration also establishes regulated professional relationships: the consultant is responsible according to professional rules, continuing education expectations, and disciplinary oversight through their Recognized Controlling Body (RCB), which provides a clearer path for accountability and recourse in case of problems.
Risks of Working with Unregistered Specialists
There is a practical market issue: some taxpayers pressure consultants to 'achieve the impossible,' such as approving aggressive tax positions clearly incompatible with the law, or artificial positions based on exploiting perceived loopholes or ambiguities in the law and process. Such a situation can put even diligent consultants in a difficult position, as a conflict arises between commercial pressure and the professional duty to act competently and objectively within the law.
A serious concern is also the shameless proliferation of social media pages where self-proclaimed 'tax consultants'—registered, unregistered, or completely unknown—openly advertise 'loopholes' in SARS and other demonstrably illegal schemes. This is not 'tax consultation'; it is a direct invitation to unlawful actions disguised as a service offering, putting ordinary taxpayers at risk when SARS discovers violations.
The public message must be unequivocal: legitimate 'loopholes' or shortcuts in strategy or compliance process, especially in tax, do not exist. Anyone selling shortcuts, 'special access,' or guaranteed results is, by definition, a red flag, and taxpayers must immediately withdraw: verify the consultant's registration and status with the controlling body, refuse to provide confidential access information, and do not allow anyone to change your contact details with SARS.
Mapitso Mamabolo, an SAIT compliance officer, emphasizes: 'This is where checking ceases to be optional and becomes basic self-protection.'
The Role of Registered Consultants
This is why registered consultants play a vital public role that goes beyond mere 'filing documents': they also educate and stabilize their clients. They help taxpayers understand complex legal requirements, the limits of what is permissible, and the real risks of non-compliance. Simply put, good consultants do not just file returns; they promote responsible tax behaviour by translating complex rules into practical advice, setting realistic expectations, and guiding clients away from illegal or unsustainable approaches. This educational function is one of the most important protections the public receives when using a properly registered specialist within the regulatory system.
Consequences of Working with Unregulated Specialists
'Ghost tax consultants' can operate covertly, leaving taxpayers unprotected. Risks include false claims, unjustified expenses, fee extraction based on refunds, and misuse of personal information. Engaging an unregistered 'tax consultant' is not a harmless workaround; it can eliminate the very safeguards designed to protect taxpayers. South Africa's approach to tax administration does not provide taxpayers with a 'safe haven' simply because they relied on someone else; the obligation to ensure the accuracy and reliability of returns remains with the taxpayer.
When the assisting specialist is unregulated, the risk profile changes sharply: the consultation may prove ineffective, personal information may be exploited, and the taxpayer may have limited practical recourse for appeal, as no recognized controlling body has records or jurisdiction for swift and decisive intervention. In short, the more 'informal' the service, the higher the probability that the taxpayer will bear the consequences alone.
Control and Verification Mechanisms
The legal and regulatory framework is designed to prevent exactly this outcome. The latest SARS guidance explains that the system relies on dual registration: a natural person providing tax advice for remuneration or filling out/assisting in filling out a return for another person must register with SARS as a tax consultant and be affiliated with (or under the regulation of) a Recognized Controlling Body (RCB) within the stipulated timeframes. Current SARS criteria reflect that registration is maintained by minimum admission and retention standards, including qualification/experience thresholds, independently verified criminal record checks, CPE expectations, and tax compliance requirements.
The simple practical takeaway for readers is this: registration is not just a 'badge'; it is a gateway to a structure of minimum screening, continuous monitoring, and accountability pathways that taxpayers lose when dealing with anyone operating outside the framework.
Finally, SARS is actively strengthening its verification approach during registration. The latest SARS guidance explains that registrations are processed through an electronic workflow with automated compliance checks and risk screening, and if the screening indicates the need for verification, SARS may place the application on hold for verification and request supporting documents within specified timeframes (the guidance describes up to 21 working days for supporting documents and up to 5 working days for additional documents during verification, failure of which may lead to application rejection).
How to Check a Tax Consultant
A multi-layered approach is necessary. For a basic check, you do not need to be a tax expert. First, ask your tax consultant to provide their SARS consultant number (it should start with 'PR-...') and confirm identity details if possible. Alternatively, you can ask your tax consultant to share their practice license, which will contain all necessary information or allow verification through SARS or the Recognized Controlling Body (RCB). Also, ask which RCB the consultant belongs to and confirm membership in that RCB. If the consultant claims membership in SAIT, verify this on SAIT's compliance channels.
Precautions When Working with Any Consultant
Even when working with a legitimate consultant, basic steps should be taken to protect your SARS profile and personal information. Never allow your email address and phone number to be replaced by the consultant's data in SARS systems. A registered and legitimate tax consultant will never request personal data. Be wary of those who guarantee refunds or tie their fees to the amount of your refund. Contingency commission fee agreements are not considered a suitable or permitted payment/remuneration scheme for tax consultants in South Africa. If your tax consultant operates according to ethical and professional standards, they will not offer a contingency commission billing scheme. A SAIT consultant knows that this constitutes unethical billing practice, as it is considered creating a perverse incentive to the detriment of the unsuspecting taxpayer.
Request a written scope of work and keep records of instructions and submissions. A diligent tax consultant always begins collaboration by drafting a formal and detailed agreement letter. This is where opinions converge and expectations are laid out. The agreement letter is critical for client management/interaction. It is also often the primary document protecting both tax consultants and taxpayers.
Ensure you personally review key returns before submission; the responsibility for accuracy lies with the taxpayer. A registered tax consultant will always ensure their client understands the process, as well as mutual obligations/responsibilities to the extent that both parties are responsible for the taxpayer's tax affairs.
The Importance of Controlling Bodies
As an RCB, SAIT is part of a structure that supports professionalism and public trust in the tax consulting industry. Chapter 18 of the Tax Administration Act regulates professionalism in the industry, and tax consultants play an instrumental role in compliance. Simply put, when the tax consulting ecosystem is healthy, society is safer, and the tax system functions better. SARS guidance also recognizes that the withdrawal of registration and non-compliance by tax consultants have real indirect consequences: they affect livelihoods, business continuity, and the taxpayers served by these consultants. This is why RCB oversight matters; it helps promote early compliance, consistent standards, and timely correction of issues before they escalate into disputes, deregistration, or public harm.
In practice, RCBs are not 'bystanders' in this system. RCBs are responsible for maintaining the data and registration status of their member consultants and managing members, including initiating registrations, maintaining relationship statuses, monitoring notifications, and ensuring tax consultant compliance, among other things, which is an integral part of the RCB mandate. This capability supports proactive management: it allows RCBs to identify emerging issues and engage with members.
