Page 59 - Profmark_2024_Directors Guide

ROLE OF THE PUBLIC OFFICER IN THE COMPANY

■ The Income Tax Act requires that all companies have to appoint a public officer with
the South African Revenue Service (SARS).
■ To qualify as a public officer, a person has to be a natural person who is resident in
South Africa, is approved by SARS, and has a tax number. It is usually one of the
directors of the company or members of a CC who is appointed, or it could be a
senior official in the company.
■ The appointment must be made within one month of the company commencing
business activities, or acquiring an office in South Africa. The appointment is not
registered with the Commission, but with SARS.
■ Where there is a change of public officer, the company must notify SARS within
14 days of the change taking effect. Failure to do so may result in hefty penalties,
and SARS will, by default, designate a director, member, or company secretary as
the public officer. In addition, the non-appointment of a public officer does not
exonerate the company from complying with the provisions of the Income Tax Act.
■ The role of the public officer is of extreme importance in a company. He is the “face
of the company” for taxation purposes. All actions carried out in his or her capacity
as a public officer are deemed to have been done by the company.
■ His duties are to attend to the tax affairs of the company, including (but not limited
to) attending to the submission of annual and provisional tax returns, registration of
the company as taxpayer and employer, submission of employee tax, VAT returns,
monthly declarations, and acceptance of notices served against the company. He
should be empowered by the company to properly fulfill these duties.
■ By signing returns, the public officer declares that all the information provided
therein is true. Where the information is found to be false, action may be taken
against the public officer in his personal capacity.
■ Companies and directors should be aware of the requirement to appoint a public
officer, and the duties and risk imposed upon the person taking up such a position.

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