From a Reserve Bank perspective, you pay
a 10 percent penalty on market value as
of the end of February 2016, if you keep
the assets offshore, and 5 percent if you
return the assets. If you elect to keep the
assets offshore and they are not liquid –
forcing you to pay the penalty using South
African rands – then there is an additional
2 percent penalty.
circumstances are different. This is money
well spent, and often the way information
is prepared and presented can be key
determining factors.
Once you no longer have to lurk in the
shadows, and your assets are fully visible,
the next round of decision-making begins.
Diversification, retirement planning, hard
currency, steady and consistent growth,
The SARS draft provision states that you access, safety and security, and succession
will have to:
planning can now be debated and a plan
• Pay tax calculated on any income, put into action to meet your objectives.
dividend, rental or capital growth from This is where Carrick Wealth excels and
2010;
adds real value.
• Pay interest from 1 March 2010 on 50
percent of previously undeclared “seed We are specialists in visible, simple and
money” for the offshore investment; cost-effective international ownership
and
structures and advise you on appropriate
• Pay a (percentage-wise) modest add- international investments with leading
on (depending on the specific facts).
investment houses. Being independent
allows Carrick Wealth to provide unbiased
You will also have to include 50 percent and objective advice for your best
of the seed capital (amount transferred interests. With us, the protection of your
offshore before March 2015) in your hard-earned wealth is paramount.
tax return, which will be taxed at your
marginal income tax rate. If you are a 41 Better you pop your head above the parapet
percent income taxpayer, that would imply now and take the knock. All will be well if
an additional 20.5 percent tax (50% x 41%). you do so and investment growth can begin
to make up for the losses incurred.
Trusts will not qualify to apply for the
amnesty. Settlors, donors, deceased estates
or beneficiaries of foreign discretionary
trusts may, however, participate in the
amnesty if they elect to have the trust’s
offshore assets and income deemed to be
held by themselves.
We strongly recommend seeking the
opinion and advice of a qualified and
experienced tax attorney, as everyone’s
Disclaimer: Carrick Wealth is not a tax
advisory service. The information provided
is for illustration purposes only and is not
to be relied upon. It is advisable to seek
guidance from registered tax attorneys for
your specific circumstances.
CONTACT YOUR LOCAL CARRICK WEALTH ADVISOR:
Cape Town: Anthony Palmer & Sion Gelgor :
021 201 1000
Durban: Paul Mitchell: 031 940 0075
Johannesburg: Ian Edwards : 010 003 6744