VOLUNTARY PROGRAMME
SARS trust rules may put lid on asset disclosure
Failure of the special voluntary disclosure programme to provide adequate relief for trusts is likely to deter taxpayers
Tax experts believe significant sums of undeclared assets have been hoarded offshore by South African taxpayers but they might be reluctant to declare them under the special voluntary disclosure programme because of the way it deals with trusts. The Rates and Monetary Amounts and Amendment of Revenue Laws (Administration) Bill was signed into law by President Jacob Zuma last week. It takes effect retrospectively from October 1 2016 and applications can be made until end-June. However, the act has not yet been published in the government gazette, the last step for it to enter the statute books and for there to be absolute legal certainty about it. Tax professionals say the delay in getting the bill promulgated has dampened initial enthusiasm, and they cannot really begin to promote it until it is fully enacted. "This delay is causing problems for taxpayers," Hogan Lovells head of tax Ernie Lai King said. "The people with significant sums appear to be still mulling over whether they w...
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