PRACTITIONER CONNECT (ISSUE 7 – MARCH 2017)

Welcome to the latest edition of Tax Practitioner Connect, the electronic newsletter for tax practitioners that keeps you up to date with the tax matters that affect you.

To read our newsletter below, click on each heading to expand the corresponding article.

 The Special Voluntary Disclosure Programme (SVDP) is now open for a limited period to allow individuals and companies the opportunity to regularise both their tax and exchange control affairs.
The SVDP is part of Government’s interventions to combat tax avoidance and as such SARS and the South African Reserve Bank (SARB) are working together to ensure that applications for the SVDP are assessed through one joint process for both tax compliance and exchange control contraventions.
 The SVDP opened on 1 October 2016 and will be open for applications until the end of August this year. To date SARS has already received disclosures of R3.8 billion in foreign assets which will yield revenue of about R600 million.

The SVDP is viewed as the precursor to the automatic exchange of information between tax authorities that will come into operation in September this year. It is the last chance that taxpayers will have to voluntary disclose offshore assets and qualify for tax relief provided that they meet the qualifying criteria. Once the automatic exchange of financial information (AEOI) between tax authorities come into operation, they will have to face the full might of the law.

The AEOI is the result of an initiative stemming from South Africa signing an Inter-Governmental Agreement (IGA) with the US Internal Revenue Service (IRS) on their Foreign Account Tax Compliance Act (FATCA) as well as the Organisation for Economic Cooperation and Development (OECD) Common Reporting Standard (CRS).

South Africa has worked with more than 100 jurisdictions in crafting this multilateral instrument that will swiftly modify and implement tax treaty-related measures reducing the scope for aggressive tax avoidance activities.

In terms of the CRS multinational companies are required to file further information with SARS on cross-border activities from the end of the year. SARS will continue to work actively with the international tax community and within government to modernise customs administration and combat cross-border revenue leakages, money laundering and harmful tax practices.

For more information please visit the Automatic Exchange of Information (FATCA AND CRS) page or send an email to Bus_Sys_CDSupport@sars.gov.za  

Last Updated: 02/08/2017 12:06 PM     print this page
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