South Africans who hold undeclared off-shore assets can now opt to make a declaration instead of applying for amnesty and paying a levy.
Government’s special Amnesty Unit chairman Advocate Mbuyiseli Madlanga said in a statement on Thursday that the Exchange Control Circular No D 405, issued on September 30, provided a loophole for residents under certain circumstances.
If residents had been working overseas and brought the income earned into the country before July 1, 1997 and did not declare it, they now had the opportunity to do so.
Likewise, South Africans who brought inheritances into the country before March 17, 1998 without declaring it, could do so now and avoid paying the levy.
The circular also made provision for the declaration of unauthorised foreign loans.
In terms of the circular, residents would now be liable to pay only the difference between the worth of their assets and the value of the debt. Previously they would have had to pay tax on the entire value of their asset.
Immigrants who held assets prior to their immigration to South Africa were also provided for under the new measures.
Madlanga said the circular might affect some applications already submitted to the unit.
”A substantial number of the applications already lodged with the unit do not reflect the source of assets that are the subject of the application.”
He urged such applicants to contact the unit as soon as possible to discuss the issue.
The flow of applications to the unit had increased of late, due to the looming cut off date for applications.
Madlanga said over 3 000 applications had been received to date.
The amnesty allows individuals, close corporations and trusts to apply — up until November 30 — for amnesty from civil and criminal prosecution for illegally moving money abroad in the past. The amnesty is also open to a small class of entities, such as wholly-owned companies, that actively helped individuals shift
funds offshore. – Sapa