Estate Living August 2016 Digital Issue | Page 34

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