According to my knowledge I have never dealt with a client who...

According to my knowledge I have never dealt with a client who was automatically registered as a taxpayer with SARS. Can you please advise and also refer to the relevant tax law?

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I had a client thinking that she was registered for income tax after reading your article: “Tax Basics for Business Owners”; where is stated the following: “A CC or private company must be registered with the Registrar of Companies and Close Corporations to obtain a business reference number. Your CC or private company will then be registered automatically as a taxpayer.”

According to my knowledge I have never dealt with a client who was automatically registered as a taxpayer with SARS? Can you please advise and also refer to the relevant tax law.

That is a very old article, and before the implementation of the new companies act there was a time period where the CIPRO (now CIPC) would send through details of newly registered companies to SARS and they would be registered for income tax automatically.

Especially those companies that were registered in big bulk batches by company registration businesses (those that register shelf companies and then sell them…)

This was not consistent though, as we often thought companies were registered, and then they were not, and vice versa.

They have since ceased this practice.

 

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Le Roux van der Walt
Le Roux van der Walt is an accountant who swopped the overstressed, underpaid life of working at a firm of Chartered Accountants in the Cape Town city centre, where clients are simply another file on his desk, for the more fulfilling life of working for himself and servicing smaller clients in person. Lighthouse Consulting gets its name from the view from Le Roux’s office where he started off in Mouille Point, and signifies the guiding light Lighthouse Consulting aims to be for their clients. Email leroux@lighthouseconsulting.co.za for more information.