VDP, SARS and Exchange Control: Good news ahead?

A3_BWe have reported on the Voluntary Disclosure Program (VDP) and SARS. Taxpayers with undeclared off-shore accounts were advised to enter the VDP by August 12th. The deadline does not apply to you if:

  • You have already disclosed any off-shore assets to SARS, or
  • SARS are unaware of undisclosed accounts you have – if you have undisclosed off shore assets, seriously consider entering the VDP as more and more tax havens are disclosing names (including trusts) to SARS.

SARS levies a 10% penalty plus a late submission penalty (this is subject to a maximum of R16 000). Proposed new tax legislation will eliminate the 10% penalty.

The other disincentive for residents normalising their affairs is the high penalties imposed by Exchange Control on the off-shore amounts. This can be as much as 30% of the value of these funds.

Exchange Control is reportedly considering offering amnesty to residents to encourage them to declare undisclosed off shore assets. This will be a significant step and let’s see how it develops.

© DotNews, 2005-2015. This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

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