The introduction of an amnesty for individuals who illegally stashed money offshore in the past, has been postponed by one month, the National Treasury confirmed on Wednesday.
The amnesty window period is now due to begin on June 1, and will run until the end of November, said Treasury tax policy chief director Martin Grote.
A revised Exchange Control Amnesty and Amendment of Taxation Laws Bill was approved by Cabinet earlier on Wednesday, and is expected to come before Parliament’s finance portfolio committee on May 13.
Parliament rises for a three-week constituency period from Thursday.
Cabinet said in a statement the draft bill incorporated comments from recent meetings of the committee, as well as from National Treasury, the SA Revenue Service and Reserve Bank officials.
Finance Minister Trevor Manuel hinted earlier this month that the proposed May 1 to October 30 window period may have to be changed to allow for more consultation.
This followed concerns raised by MPs and industry players over various issues in an earlier draft, including whether advisers and trusts should be allowed to apply for amnesty.
Advisers and facilitators were removed from the ambit of the law in a last-minute amendment before the measure was presented to the committee last month.
Manuel announced in his Budget speech on February 26 that individuals who stashed money offshore in contravention of exchange control and income tax laws will be free from criminal or civil prosecution, provided they successfully apply for amnesty. – Sapa