Importance of Regularly Updating an Entity’s Representative Taxpayer

It is becoming increasingly crucial for entities to keep the details of their Representative Taxpayer updated with the South African Revenue Service (“SARS”), in line with the requirements set out in the Tax Administration Act, 2011 (“the TAA”).

In terms of the TAA, taxpayers are legally obligated to notify SARS within 21 business days of appointing a Representative Taxpayer, or of any subsequent changes made to such an appointment. For companies, this typically refers to the appointment of a public officer or equivalent official.

Failure to comply with these obligations constitutes an offence and may lead to administrative penalties, or in severe cases, criminal charges, including fines and/or imprisonment.

Understanding when to update your entity’s Representative Taxpayer is just as important as the update itself. Below are common and typical scenarios, often arising from standard business practices, that warrant such a change:

• A change in directorship or company leadership, including resignation, retirement, or appointment of a new director or CEO;

• Resignation or dismissal of the current public officer;

• Mergers, acquisitions, or internal restructuring, which may shift responsibility to a new legal representative;

• Changes in ownership or shareholding that necessitate an update in accountability structures;

• Appointment of a new accounting officer or responsible tax function within the organisation;

• Relocation of the business or change in registered business particulars;

• Liquidation, deregistration, or business rescue processes.

These events are relatively common in the business lifecycle and make it imperative for taxpayers to consistently monitor and update their SARS records to remain compliant.

In practice, many entities face significant administrative and operational difficulties when the Representative Taxpayer information is not up to date. These limitations can severely impact business continuity, cash flow, and regulatory compliance. Some of the challenges include:

• Inability to create new tax registrations via SARS eFiling;

• Failure to transfer tax types, resulting in inaccessible or outstanding tax returns and blocked access to SARS Statement of Accounts and return history;

• Impact on Tax Compliance Status (TCS);

• Delayed or rejected dispute submissions, due to unmatched power of attorney documentation;

• Delayed VAT and other tax refunds, due to outdated registered particulars.

These operational barriers can result in missed compliance deadlines, penalties and interest, cash flow disruptions, and delays in dispute resolution or refunds ,all of which could otherwise be avoided through timely updates. This highlights the broader importance of maintaining up-to-date information and ensuring full compliance with the TAA.

Although SARS officially allows for a 21-working-day turnaround time for updating representative details, in many instances, taxpayers experience delays that exceed this period, often requiring escalation through internal or external support channels.

Keeping your Representative Taxpayer details current is not merely an administrative requirement , it is a strategic compliance necessity that directly impacts your entity’s ability to engage with SARS and meet its legal obligations effectively.

We strongly encourage all taxpayers to review and update their registered details regularly. For support with this process, please contact Claudia Steyn from VAT IT SA at claudias@vatitsa.co.za.