What is the changing role of tax professionals in South Africa amidst digital transformation and AI? Emphasising the need for a more extensive skill set beyond conventional tax law knowledge, the transformation begins with universities adjusting curricula to incorporate emerging technologies. Subsequently, industry initiatives will play a crucial role in enhancing practitioners’ skills, transforming them into solution-driven professionals who add value in the evolving tax environment.
What is the changing role of tax professionals in South Africa amidst digital transformation and AI? Emphasising the need for a more extensive skill set beyond conventional tax law knowledge, the transformation begins with universities adjusting curricula to incorporate emerging technologies. Subsequently, industry initiatives will play a crucial role in enhancing practitioners’ skills, transforming them into solution-driven professionals who add value in the evolving tax environment.
Academia’s Evolving Role in Shaping Future Tax Practitioners
The shift towards a more dynamic role for tax professionals begins with academia. Ettienne Retief, Chairman of the SAIPA Centre of Tax Excellence Committee, emphasises the need for universities to move beyond a rote memorisation approach.
“Instead, institutions must focus on cultivating a deep understanding of the tax system, enabling future practitioners to apply critical thinking, professional scepticism, and interpretative skills,” Retief asserts.
“Already, from a SAIPA point of view, we are driving that centre of future excellence to look toward that future practitioner.
“The goal is to produce solution-driven professionals who, alongside their expertise in tax laws, prioritise ethics and professional behaviour.”
Khanyisa Cingo-Ngandu, Head of Tax at SNG Grant Thornton, underlines the importance of adaptability in the face of changing business dynamics. “Tax professionals must transition from data cleanup and spreadsheet-centric tasks to interpreting tax legislation—a value-adding role that aligns with their extensive study and experience, while acting as champions for their clients where grey areas in the practice of tax law are encountered.
“They must play an active role in seeking clarity within the letter of the law to enhance certainty within the tax system, which will ultimately build taxpayer confidence,” he notes.
“Tax professionals must transition from data cleanup and spreadsheet-centric tasks to interpreting tax legislation—a value-adding role that aligns with their extensive study and experience.”
Academic Adoption and Adaptation to Digital Tools
Universities are actively restructuring their curricula to integrate emerging technologies essential to the tax profession. Courses on data analytics, machine learning, and blockchain technology must become core syllabus components, to ensure that students are well-versed in the tools they will need to navigate the complexities of the digital tax environment.
A greater level of collaborative effort between academia and industry will be required to bridge the gap between theory and practice. Guest lectures, internships, and research partnerships can be used to bring real-world insights into the classroom, fostering a holistic understanding of the profession.
Industry Initiatives in Upskilling Tax Professionals
Beyond academia, tax firms and professional organisations have a fundamental role to play in the upskilling of their members. Training programs, workshops, and conferences focused on digital tax issues, emerging technologies, and data-driven decision-making will need to become more commonplace.
Internal knowledge management systems and online learning platforms are already being implemented at an organisational level to ensure tax professionals have continuous access to the latest resources and information, and such commitment to ongoing learning and professional development will be essential to maintain skills relevance in the ever-evolving realm of digital tax.
Challenges and Opportunities in the Digital Shift
Jashwin Baijoo, Head of Strategic Engagement & Compliance at Tax Consulting SA, acknowledges the double-edged sword of technological advancement. “On one hand, practitioners need to adapt by integrating themselves into systems and, secondly, by using software checks and balances to assess both themselves and their clients. On the flip side, even with technology, there are limitations. Vetting clients may become problematic; for instance, a multi-million-rand client with only one bank account raises questions about reasonability,”
“This is precisely why SARS has a high-wealth unit – high-wealth individuals often have complex tax affairs that extend beyond one jurisdiction,” he continues, “The automatic exchange of information becomes central here. While it facilitates SARS, practitioners need to integrate and upskill in technological development.
“Collaborating with SARS, using tools like tax check, and implementing bots and programs for compliance checks will streamline the process but challenges will still arise, especially for older practices unfamiliar with software utilisation.”
Regarding SARS systems, Baijoo notes that they are functional but not necessarily accurate. Referring to a recent incident in which clients receiving conflicting system-generated e-Filing mail and SMS adds to the complexity. “This unintended chaos can undermine taxpayer confidence, leading to scepticism about the system and, by extension, their practitioners.
The average taxpayer, feeling burdened by a 45% tax rate, might withhold information, especially about offshore interests.
Challenges and Opportunities in the Digital Shift
Jashwin Baijoo, Head of Strategic Engagement & Compliance at Tax Consulting SA, acknowledges the double-edged sword of technological advancement. “On one hand, practitioners need to adapt by integrating themselves into systems and, secondly, by using software checks and balances to assess both themselves and their clients. On the flip side, even with technology, there are limitations. Vetting clients may become problematic; for instance, a multi-million-rand client with only one bank account raises questions about reasonability,”
“This is precisely why SARS has a high-wealth unit – high-wealth individuals often have complex tax affairs that extend beyond one jurisdiction,” he continues, “The automatic exchange of information becomes central here. While it facilitates SARS, practitioners need to integrate and upskill in technological development.
“Collaborating with SARS, using tools like tax check, and implementing bots and programs for compliance checks will streamline the process but challenges will still arise, especially for older practices unfamiliar with software utilisation.”
Regarding SARS systems, Baijoo notes that they are functional but not necessarily accurate. Referring to a recent incident in which clients receiving conflicting system-generated e-Filing mail and SMS adds to the complexity. “This unintended chaos can undermine taxpayer confidence, leading to scepticism about the system and, by extension, their practitioners.
The average taxpayer, feeling burdened by a 45% tax rate, might withhold information, especially about offshore interests.
“This reluctance, coupled with the automatic exchange of information, could lead to disputes, leaving tax practitioners ill-equipped.”
“There’s even the looming threat of criminal charges for practitioners not exercising due diligence,” Baijoo notes.
Emerging Skills for Tax Professionals
To thrive in the digital era, tax professionals in South Africa must cultivate a range of new skills:
- Data literacy: Proficiency in collecting, analysing, and interpreting large datasets is essential for identifying tax risks and making informed decisions.
- Digital skills: Adeptness in using digital tools, tax software, data visualisation tools, and cloudbased platforms will be necessary for efficiency.
- Problem-solving and adaptability: Critical thinking and the ability to adapt to changing circumstances will be critical to keep up with the pace of change in technology and tax-related regulations.
- Communication and collaboration: Effective communication and collaboration skills are paramount for successful outcomes, whether working with clients, fellow tax professionals, or technology experts.
Looking Ahead Toward Specialisations and Collaboration
The integration of technology also needs a mindset shift for tax practitioners themselves, most importantly. As such, Continuous Professional Development (CPD) must become not just a checkbox exercise, but a mindset of constant adaptation to stay relevant.
As the digital landscape matures, the role of tax practitioners must diversify into specialised areas.
“Data analytics, data integrity, and specific AI skills will become integral specialisations within the tax space, and collaboration between practitioners with different expertise will be key to success in this new era,” Cingo- Ngandu affirms.
The call for practical CPD that demonstrates the practical use of technology highlights the need for ongoing education that goes beyond traditional learning.
Hein Pretorius, SAIPA Tax Practitioner, emphasises the importance of showcasing the time-saving benefits of new technologies, chuckling while suggesting that CPD be turned into a reality show that sees the old and new schools of thought go head-to-head in a technology battle in order to convince the change-resistant older generation to embrace a digital-first mindset.
“This is where the transformation introduced by SARS will come into play, compelling them to shift to new technology to align with SARS’ evolving information requirements,” Pretorius suggests.
The Journey is Underway
Ultimately, the future of taxation, the professional relevance and value to clients will lie in the hands of individual tax practitioners who embrace technological advancements, continuously upskill, and collaborate across specialisations. The journey from a complianceoriented role to a solution-driven, value-adding profession is well underway, shaping the tax landscape for generations to come.
“For older accountants, embracing new technology will be a struggle, and there may be a need for it to be mandated.”