Government has decided to include financial advisers in draft tax and foreign exchange amnesty legislation.
In terms of the latest version of the draft Exchange Control Amnesty and Amendment of Taxation Laws Bill, published on Thursday, advisers will be able to apply for amnesty, but this will have to be done jointly with their clients.
Advisers were excluded from the law in the previous version.
Their exclusion had raised concerns they could discourage their clients from coming forward. It was also feared exclusion of the advisers could result in the SA Revenue Service (Sars) and SA Reserve Bank (SARB) carrying out a ”witch-hunt” against them.
The latest version of the bill has already been approved by cabinet.
Earlier this month, Finance Minister Trevor Manuel said the National Treasury was prepared to consider arguments that advisers be included in the proposed amnesty.
”If there are very strong views about the advisers wanting to be granted amnesty, clearly we would listen to them,” he told Parliament’s finance portfolio committee.
However, his preference was that advisers and facilitators who helped individuals move money offshore in the past should not fall within the ambit of the law.
The bill aims to allow South Africans to regularise their tax affairs.
People 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 between May 1 and October 31 this year. – Sapa