across the bar

Public Officers

by Nicci - Posted 13 October 2011

THE ROLE OF A PUBLIC OFFICER

Every company carrying on business or having an office in South Africa must at all times be represented by an individual, the public officer,  who must be resident in South Africa.  If you are a director of a private company, or a member of a close corporation,  you may also serve as the entity's public officer.

The public officer, an appointment which is required in terms of Section 101 of the Income Tax Act 58 of 1962, is essentially responsible for representing the company in its dealings with SARS.   The individual must be appointed within one month after the company commences carrying on business or acquires an office in South Africa.  

It is a requirement of the Income Tax Act that the position of public officer must be kept filled at all times.  Such vacancies as may arise have  to be addressed by a company  as a matter of priority, by appointing a new public officer and notifying SARS of the change.  This must be done within fourteen days of the change occurring.   Section 101(4) of the Act provides that if there is no such appointment, the public officer of the company shall be the managing director, director, secretary or other officer of the company as the Commissioner for Inland Revenue determines.

The duties and responsibilities of the public officer include the following:

• Managing the income tax affairs of the company, including the submission of tax returns, answering any questions or providing explanations which may be required to determine the tax liability of the company and  the payment of tax on behalf of the company.
• The registration of the company as an employer.
• The registration as a VAT vendor.

Individuals who serve as public officers should ensure that there is full compliance by the company with the requirements of SARS. 

The public officer is exposed to significant risk in carrying out his duties.  By signing returns, he is declaring that all the information provided therein is true.  Should it subsequently be found that this is not the case, the public officer may have action taken against him in his personal capacity.   If a company fails to comply with the requirements of the Income Tax Act,  the public  officer will be held responsible by SARS.