Guiding consumers since 2009

Over R1 billion collected by SARS programme

By Isabelle Coetzee

Earlier this week the South African Revenue Service (SARS) announced they have tallied over R1 billion in revenue from their Special Voluntary Disclosure Programme (SVDP). 

The SVDP offered South Africans an opportunity to legally declare their offshore assets and incomes over the course of a year, ending on 31 August, 2017. 

READ: Declare offshore assets by 31 august

Of over 2000 applications received by SARS at the closing date, 335 have been processed so far, amounting to R1 016 467 286 in revenue. 

According to a recent press release, this will assist the country in its socio-economic development and take South Africa forward. 

The SVDP ended the day before the first Automatic Exchange of Information (AEOI) came into effect, which now enables local financial authorities to access international banking information.

As a result, SARS can now locate undeclared offshore assets and incomes that have been exported in order to dodge taxes.

Darren Britz, admitted attorney of the High Court who specialises in SARS’s voluntary disclosure programmes, believes progress has been made with the AEOI, but that it’s still in its infancy.

“A number of our clients have reported receiving notices from their respective foreign banking institutions in which they were required to disclose financial and tax information,” he explained. 

“This mandatory disclosure will ultimately make its way to SARS who will scrutinise against old income tax returns,” he added.

Britz thinks these are minor advancements but, “We are all waiting for a newspaper headline which declares that SARS has discovered offshore assets worth billions.” 

SARS is still offering their ongoing Voluntary Disclosure Programme (VDP), which also allows South Africans to declare their offshore assets and incomes, but under different conditions.

“Tax evasion carries penalties of 200% of the tax liability and, more worrying, is the criminal prosecution that may follow,” said Britz.  

He advises anyone who is not one hundred percent sure they are tax compliant to seek advice and, if necessary, make a disclosure through the VDP. 

To sort out your taxes through Justmoney, click here

Recent Articles

Featured The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Wax On Wax Off Wednesdays at Rouge Day Spa

Price: From R50
When: Wednesdays
Where: Cape Town

Aarya Restaurant Christmas Lunch Special

Price: R425
When: 25 December 2019
Where: Johannesburg

Da Vinci’s Tantalising Tuesday Pizza Special

Price: Available on request
When: Tuesdays
Where: Cape Town