Jashwin Baijoo, Head of Strategic Engagement & Compliance at Tax Consulting SA joins us on the OFM Business Hour to discuss the CIPC’s beneficial ownership register on the commission’s e-services platform and to expand on how Sars is aligning with this functionality.

The beneficial ownership register on the CIPC’s e-services platform

According to Baijoo, the beneficial ownership register is essentially a declaration on the CIPC’s platform. It was introduced in April 2023 to ensure transparency.

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Who qualifies as a beneficial owner? 

The Head of Strategic Engagement & Compliance at Tax Consulting SA explains that at a high-level a beneficial owner, is any person who, in relation to a company, either ultimately owns that company or exercises effective control of that company. This includes, but is not limited to persons who:

• Hold a beneficial interest in shares of the company;
• Is able to exercise voting rights and director changes in the company;
• Is able to control voting on company decisions, or director changes in the company; or
• Holds the power to materially influence, either directly, or through a chain of control, the management of a company, or other legal entity, body of persons, partnership, or other persons, acting under the provisions of a trust agreement.

Tax Matters Episode 3: Tax Compliance Status

In this episode of Tax Matters, we discuss the tools a taxpayer can use to remedy their tax compliance status.

Watch previous episodes on SARS TV: https://t.co/KkuiIxGdHR#YourTaxMatters pic.twitter.com/7thRo4ZtPG

— SA Revenue Service (@sarstax) June 5, 2023

How is Sars aligning with this?

Baijoo said Sars has aligned with this functionality introducing system changes from 23 June 2023. “This includes the Income Tax Return for Companies (ITR14), now encompassing a Share Register to be completed, with details of classes of shares, and full disclosure of the holders of these shares, per class.

Whilst taxpayers may consider the CIPC disclosures as more administrative than anything else, SARS coming to the party, makes it evident that the organisations have aligned in making non-compliance hard and costly” explains the tax attorney.

IMPORTANT NOTICE TO COMPANY DIRECTORS

CIPC requires directors to confirm company physical addresses for certain services. Non-compliance may have serious consequences. Respond promptly to requests at ComplianceCompaniesNameChange@cipc.co.za.#CIPC #ComplianceAlert #Directors pic.twitter.com/KrDgirdzaf

— Companies and Intellectual Property Commission (@theCIPC) July 28, 2023

 “The days of just being some warm body or silent partner, sitting behind and exercising control over the management of assets of value, and complex ownership structures, are behind you now” warns Baijoo.

Don’t ignore compliance consult a tax attorney

To ensure compliance make use of a tax attorney to avoid being caught on the wrong side of these developments. 

OFM Business Hour