CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Manuel Makes Last Minute Change To Exchange Control Amnesty

Manuel Makes Last Minute Change To Exchange Control Amnesty

by Robert Lee, Tax-News.com, London

07 April 2003


Last minute changes were made to South Africa's income tax and foreign exchange control amnesty last week to exclude tax and financial advisors from its provisions.

So-called "messengers" who carried funds offshore will now not be covered by the legislation which is aimed at people who transferred or accumulated funds abroad in contravention of the foreign exchange and tax laws.

The change was made at Finance Minister Trevor Manuel's behest on Thursday morning after the draft bill had already been published on the SARS (South African Revenue Service) website. However, the decision has sparked fears that the amendment may be unconstitutional and discriminatory.

Addressing Parliament's finance committee last week, Martin Grote, the national treasury's chief director of policy sought to justify the government move by explaining that professionals and experts such as attorneys and tax consultants should have to comply with a "higher level of professional ethics." Therefore, those that facilitated the transit of funds offshore should face the legal consequences.

It is thought that the amendment will have the effect of encouraging more people to come forward in the amnesty as they will no longer be required to disclose how, and who helped them move their money offshore. The ultimate aim of the amnesty is to increase the tax base.

A senior tax partner at Moss Morris attorneys, Daniel Erasmus, was one who dubbed the move unconstitutional and discriminatory. Speaking to the South African Sunday Times, he argued that the law surrounding exchange controls and taxation was very much a grey area, and allowance should be made for those who have misinterpreted these rules.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »