The 2016 Budget Speech and the ‘Special Voluntary Disclosure Programme’
The 2016 Budget Speech has revealed the South African government’s plans in terms of the taxation and regularisation of offshore assets and income for non-compliant taxpayers. Finance Minister Pravin Gordhan, announced that due to the developments made in the new global standard for the exchange of information between tax authorities, the South African Revenue Services (SARS) in conjunction with the South African Reserve Bank (SARB) will be setting up a Special Voluntary Disclosure Programme, in order to encourage non-compliant taxpayers to regularise their offshore assets and earnings in return for exemption from prosecution.
As a result of the new dispensation of pronounced global relations with international revenue authorities, the South African Revenue Services is able to glean information on offshore investments made by South African residents, establishing the need for regularisation of these investments. Nortons Inc has successfully assisted South African companies and individuals, who have contravened the South African Income Tax provisions and the South African Reserve Bank regulations, in the regularisation of offshore monetary transactions, which have resulted in foreign income and capital gains/losses.
Voluntary Disclosure Program requirements:
- Default not previously disclosed to SARS
- No pending audits by SARS
- Application to be full and complete in all material aspects
- Must involve the potential imposition of an understatement penalty
- Not result in a refund due and payable by SARS
- Must be made in the prescribed form and manner
Uniquely our Tax team has the added benefit of ensuring that all tax consultations and assessments conducted remain confidential as they are covered by legal privilege, in that our attorneys are involved throughout the complete process.
The relationships formed and maintained with our clients is a factor which sets the Nortons Inc Tax Team apart from our competitors and is one of the reasons why companies are referred to us when in need of tax-related assistance.