Estate Living August 2016 Digital Issue | Page 33

the current Voluntary Disclosure Programme (VDP) or the Special Voluntary Disclosure Programme (“amnesty”), which is expected to come into play on 1 October 2016 and be open for six months. Penalties and fines will vary as detailed below. You should be aware that the Reserve Bank and SARS are two separate entities and that you may be in contravention of one and not the other. This will have an impact on whether you use VDP or amnesty. The purpose of this article is to put the fear of God into you; to rip your head out of the VOLUNTARY DISCLOSURE sand; to give you a hard slap to get you PROGRAMME to realise that action needs to be taken. This is an initiative from SARS, not the Reserve Bank, and is best used when Consider yourself warned! you are not in contravention of exchange Hopefully, the penny has now dropped. If control. For example, if you inherited so, and you prefer sleeping in your own offshore assets or earned offshore income bed, spending weekends with your family, while living abroad, then you may not be eating what you want and being part of in contravention of exchange control and a community, then read on and take the should go through the VDP. Penalties range following steps: from 10 percent to 40 percent under the programme. 1. Consult a tax attorney. Not your accountant, nor your financial adviser, as they may be obligated to disclose details of your non-disclosure to the authorities. Carrick Wealth would be happy to direct you to a well-versed tax attorney. 2. Your tax attorney will need information on how and when the offshore assets were accumulated and the timing thereof. He or she will also need evidence of income and capital gains. Time is of the essence, so start gathering the information immediately. 3. You will then be advised to go through You would be well advised to take advice on whether VDP is the best route to take, however, as it may be better to wait for the amnesty in some circumstances. SPECIAL VOLUNTARY DISCLOSURE PROGRAMME This “amnesty” is a joint initiative between SARS and