Page 13 - PHi_Q&A_Eng-Digital.indd

In terms of the memorandum, SARS will share information with the B-BBEE
Commission regarding possible fronting practices, non-compliance with the
B-BBEE Act and such other information as it may deem necessary, subject to BEE
any applicable confidentiality requirements.
In turn, the B-BBEE Commission will provide SARS with information relating to
possible suspicious or illegal activities that may impact revenue collection. The
B-BBEE Commission will also share information, upon request, relating to major
B-BBEE transactions (exceeding R25 million), ownership and management
details relating to B-BBEE transactions, complaints received regarding B-BBEE
transactions and other relevant information that can assist SARS to conduct tax
compliance checks on the entities involved.
This closer working relationship between SARS and the B-BBEE Commission
requires that parties to a B-BBEE transaction should now make absolutely sure
that both the BEE and tax aspects of their transaction are compliant and that
the necessary advisors have been consulted in relation to their transaction.

Is BEE compliance a legal requirement for
estate agents?

Adrian Frewen
July 2018

“I run a small estate agency in town. I’ve recently listened to a radio discussion
that implied estate agencies will also have to be BEE compliant and get a
BEE certificate. Is this true? I’m a small agency and cannot imagine that BEE
compliance would be applicable to my business?”

It must be appreciated that BEE compliance has become a key aspect of doing
business in South Africa. Through the application of industry sector charters as
well as the pervasive impact of preferential procurement, it is nearly unavoidable
in today’s times for any business to be BEE compliant. The property sector is no
different, with even estate agents currently facing a situation where compliance
may very soon become a real condition to being allowed to practise as an
estate agent.

The draft Property Practitioners Bill was gazetted on 31 March 2017 for public
comment, seeking to replace the current Estate Agency Affairs Act. Section 49 of
the Bill contains a list of qualifying criteria for the issuing or renewal of a Fidelity
Fund certificate, and includes a new requirement that a Fidelity Fund certificate
may not be issued to any property practitioner (which includes an estate agent

7