Registered representatives (also known as taxpayer representatives) are not well-understood and not only do questions pop up all the time, but deficiencies regularly serve as stumbling blocks for organisations trying to meet their compliance requirements.
Here is a list of FAQs that may help non-profit organisations…
What is a Registered Representative (RR) and why is the role important?
A RR is the official, SARS-approved person authorised to act on behalf of an organisation for all tax-related matters. The role exists to protect the organisation from tax fraud and loss by ensuring a single accountable representative manages SARS interactions. It may be helpful to think of them as the official voice and guardian of the organisation’s tax compliance.
What does a RR actually do?
A RR receives SARS messages, acts on behalf of the organisation for SARS purposes, approves changes, oversees registrations, manages e-filing permissions, and ensures compliance with tax laws. It may sound like a lot, but this is not highly time-consuming.
Why do we need a RR if we have a tax practitioner?
A tax practitioner performs technical work, such as submission of returns, but SARS seeks the RR’s approval first for major changes.
Does the RR receive every SARS communication?
Not always—SARS communication channels vary. But for certain, incorrect email or phone details may cause missed notifications, including for PINs, that can cause inconvenience.
Who qualifies to be a RR?
A natural South African resident appointed by the organisation’s governing body, usually a senior official such as a director or senior employee who serves as a public officer for the organisation in other matters too.
What if no senior official resides in SA?
SARS may approve another suitable person to act as RR.
Can the RR become personally liable for tax issues?
Yes, under certain circumstances where an organisation uses or parts with funds that could have been used to pay a tax debt (Section 155 of the Tax Administration Act). Others in the organisation who control or are regularly involved in managing the overall financial affairs of a taxpayer (which could practically include the RR, if this is their role) can also be held liable for tax debt under Section 180 if there is negligence or fraud.
How are RR details updated?
Updates must be made within 21 days via the SARS Online Query System, including uploading supporting documents and the infamous required verification photo that includes a sign stating “Update my details”. (A smile is optional but encouraged!) Further information on documents and steps to take can be found at Registered Representatives | South African Revenue Service.
What happens if no RR is appointed?
SARS may appoint someone under Section 246 of the Tax Administration Act, though this is not advised because in our experience, an organisation will simply not be able to comply with its tax responsibilities.
Who may not serve as RR?
Persons disqualified from governance roles under the Companies Act, Trust Property Control Act, or NPO Act may not act as RR.
Why are updated RR details important?
Outdated details may cause missed SARS communications and authentication PINs. This can block important processes that will result in the organisation not being able to comply with its tax responsibilities.
How does the RR relate to e-Filing access?
Without an up-to-date RR, the organisation cannot manage its e-Filing profile fully or submit annual income returns requiring up-front statements that confirm that the RR is correct.
If your non-profit organisation needs assistance with updating RR details, please contact ziyo@ziyo.co.za for a quote for support.