EXCHANGE CONTROL AMNESTY & ACCOMPANYING TAX RELIEF MEASURES
Previously many South Africans took funds offshore illegally, thereby contravening the Exchange Control Regulations and in addition, failed to declare the income that was derived from this offshore investment.
Now, however, the Amnesty Legislation provides a wonderful vehicle to enable South African residents to regulate their Exchange Control and Tax Affairs, "clean the slate" and start afresh.
In order to take advantage of the amnesty, the required documentation needs to be lodged within the time-frame set out in the legislation.
Should you wish to take advantage of this legislation then, at the time of your application, you must have either submitted your 2002/2003 Tax Return or have a valid extension that does not extend beyond 28 February 2004.
Essentially, the legislation provides a penalty IF YOU NEED tax relief of 2% and the payment of a sum of either 5% or 10% depending on whether you wish to leave your funds offshore or bring them back into South Africa. If you intend to leave your fund offshore, you will only pay the penalty of 10% after the amount of R750 000.00 has been deducted, PROVIDED THAT YOU HAVE NOT AVAILED YOURSELF OF THIS ALLOWANCE IN THE PAST.