A recent report detailing how Africa lost $US1-trillion in the last 50 years through illicit financial flows of money has raised questions about it’s abilities to curb fraud evasion and other means of corporate profit hiding. It has also sparked interest in holding multinational corporates, which are mainly responsible for… – Continue reading
To comply with unconstitutional pseudo-treaties negotiated by the Obama administration without the consent of Congress or any semblance of constitutional authority, the IRS announced that it will be sharing private financial information on U.S. bank account holders with foreign powers. No warrant is needed for foreign governments or tyrants to… – Continue reading
The Davis Committee has made certain recommendations relating to transfer pricing and documentation in its report on the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan. We are aware that the current transfer pricing practical guidelines, as contained in SARS’ Practice Note 7 (PN7), are not that clear and… – Continue reading
OFFSHORE property funds should outpace most local property funds in terms of capital growth this year. Many developed countries’ property markets are offering developers low interest rates amid increasing economic growth, while SA is expected to struggle to grow and a number of property funds here will be beset with… – Continue reading
IT IS easy to forget how fast the world has changed. The iPad is only five years old. Facebook has been with us for just a decade. Skype has just had its 11th birthday. Those have resulted in big changes to the ways we interact, but they are in turn… – Continue reading
South Africa has lost out on billions in tax revenue in the past decade as large corporations, wealthy individuals and criminal syndicates slipped nearly R1-trillion out of the country. A Washington DC research and advocacy group, Global Financial Integrity, believes South Africa suffered “illicit financial flows” totalling more than $122-billion… – Continue reading
With substantial amendments to SA transfer pricing legislation in April 2012 – as well as a lack of any subsequently updated or final Practice Note from SARS – much uncertainty still surrounds the realm of transfer pricing in SA, says Lauren Hart, of Webber Wentzel, in an analysis on the… – Continue reading
THE South African Revenue Service (SARS) has already begun to tackle the erosion of the tax base through profit shifting, which was addressed in an interim report of the Davis tax committee that was released last month for public comment. SA loses billions of rand in revenue annually through the… – Continue reading
TWO noteworthy taxation amendments came into effect on the 1st of January 2015. The first tax amendment relates to the deductibility of interest paid to a person who is not liable to tax in South Africa, for example non-residents. The section in question, section 23M of the Income Tax Act,… – Continue reading
CAPE TOWN — South Africa needs to finalise the renegotiation of its tax treaty with Mauritius as soon as possible to prevent the loss of large sums of money through “treaty shopping” the Davis tax committee has urged. The committee released its interim report on ways to prevent base erosion… – Continue reading
South Africa is losing roughly R147-billion a year to the illegal movement of money out of the country. South Africa is losing roughly R147-billion per year to the illegal movement of money out of the country. This is according to a report by international monitoring organisation, Global Financial Integrity (GFI),… – Continue reading
President Putin’s surprise amnesty allowing Russians with cash stashed abroad to bring it back home with no penalty may be a windfall, but then maybe not. The US, Mexico, Italy, Kazakhstan, and many others have tried it with varied success. When financial crises hit, governments have tried to reel in… – Continue reading
JOHANNESBURG – It has been quite difficult to keep up with the flurry of regulatory reforms in the financial services industry. Apart from the introduction of tax-free savings accounts next year and the fact that certain retirement reform regulations have been postponed, a number of other changes are also in… – Continue reading
Good news for South Africans who worked abroad. JOHANNESBURG – A number of pensioners and tax specialists heaved a collective sigh of relief after the South African Revenue Service (Sars) ruled that any pension South Africans accumulated while working outside the country will generally not be subject to local tax…. – Continue reading
The concept of base erosion and profit shifting (BEPS) has been debated at various international forums following discussions at the G20 Finance Ministers and Central Bank Governors meeting and the G20 Heads of State summit in Russia last year. The Organisation for Economic Co-operation and Development’s (OECD) BEPS Action Plan… – Continue reading
THE South African Revenue Service (SARS) is investigating possible changes to the law to make it easier for it to audit transfer pricing by multinational companies to ensure that they pay their rightful tax dues to the government. The need to maximise tax revenue has become particularly acute in the… – Continue reading
An increasing number of South Africans are sending substantial amounts of money offshore each year due to frequent travel, a greater appetite for offshore investing, business interests abroad and a growing trend to educating their children there. The UK has proven to be the popular choice due largely to the… – Continue reading
Pretoria — President Jacob Zuma has concluded his visit to Brisbane, Australia, where he led the South African delegation to the G20 Leaders’ Summit, says the Presidency. The main outcome of the Leaders’ Summit was a commitment to lift the G20’s Gross Domestic Product (GDP) by at least an additional… – Continue reading
TRANSPARENCY International warns that just because a company has an anticorruption programme, it doesn’t mean that it isn’t corrupt — it’s just less likely to be. This week, the organisation released “Transparency in Corporate Reporting”, a survey analysing 124 of the world’s largest publicly traded companies with a combined value… – Continue reading
Government must deal with tax evasion to help improve service delivery and ensure a bigger fiscus for the country, the EFF said following the mid-term budget speech on Wednesday. “Government should deal more with the issue of base erosion and capital shifting and transfer pricing because that is stealing millions… – Continue reading
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and deter” tax-avoiding financial flows. Speaking at a G20 study… – Continue reading
Swiss authorities have confirmed that, if asked, they will assist India in efforts to confirm the genuineness of bank documents and will swiftly provide information on requests relating to non-banking dossiers. The commitment was made in a joint statement following a meeting between the Swiss State Secretary, Jacques de Watteville,… – Continue reading
How your listed property holding will be taxed. CAPE TOWN – By the middle of this year, most of South Africa’s listed property companies had converted themselves into real estate investment trusts (REITs) under legislation adopted in 2013. This brings the sector in line with global standards. One of the… – Continue reading
The Alternative Information Development Centre (Disclosure: AIDC’s economist Dick Forslund contributes to Daily Maverick, most recently about Lonmin) has been served with an interdict application in the Johannesburg High Court to try to prevent the organisation from holding a press conference about Lonmin’s finances, especially relating to the use of… – Continue reading
SOUTH African property punters are still making more money offshore than in their own backyards — in both rand and dollar terms. Latest figures from Cape-based Catalyst Fund Managers and UBS show that global property stocks, or real estate investment trusts (Reits) as they are commonly known, delivered a total… – Continue reading
Reports that Lonmin was evading tax were denied by a spokeswoman on Monday, after calls that the company should be investigated. “It is completely false, we are busy preparing a statement,” spokeswoman Sue Vey said. Vey said she was not sure when the statement would be released. Earlier, Sars spokesman… – Continue reading
Having recently blasted corporate tax evaders, the deputy president now has egg on his face after Lonmin’s Bermuda tax avoidance tactics surfaced. Evidence before the Marikana commission that Lonmin moved millions in platinum revenue from South Africa to tax-free Bermuda is likely to prove embarrassing for ANC deputy president Cyril… – Continue reading
The OECD wants to force businesses to declare their turnover and number of employees in each country where they are active. Among the multinationals targeted are digital giants Google, Apple and Amazon. The Organisation for Economic Co-operation and Development (OECD) has announced an international action plan called “Project BEPS”, to target… – Continue reading
Johannesburg – More than 260 cases of tax evasion were successfully prosecuted by the National Prosecuting Authority during the last financial year. Sars spokeswoman Marika Muller said about 330 tax-related criminal cases were finalised during the 2013/14 financial year, of which 267 were successfully prosecuted. Muller said to deter non-compliance, Sars… – Continue reading
This article was first published in the 2nd quarter 2014 edition of Personal Finance magazine. Your tax liability in the country in which you live and/or work depends on the tax laws of that particular country. Countries can levy taxes on a residence basis, because you live in the country,… – Continue reading
COMPLICATED transfer pricing legislation remains a burden and has become an increased risk for multinational firms doing business in SA and the rest of the continent. Transfer pricing is the price charged for goods and services in cross-border transactions between two companies within the same multinational group. Companies can become… – Continue reading
Cape Town – Tax evasion is not only a crime against the state, it is also a crime against the people of South Africa, says Deputy President Cyril Ramaphosa. Ramaphosa has now called on South Africans who are aware of tax evasion by individuals or companies to report them to… – Continue reading
This article was first published in the 2nd quarter 2014 edition of Personal Finance magazine. Most people accept that they have to pay taxes in their country of residence. But citizens of the United States and green card holders who live outside that country – even if they have never… – Continue reading
FRANCISTOWN: Government’s negotiations with other countries to sign Double Taxation Avoidance Agreements (DTAA) are underway to ensure investor benefits from tax holiday incentives continue, Boniface Mphetlhe of Ministry of Trade and Industry (MTI) has said. The Deputy Permanent Secretary in MTI, Mphetlhe, was speaking on the topic of Botswana Investment… – Continue reading
WEALTHY South Africans’ banking needs have changed in the past decade as exchange-control regulations have eased, and they have found themselves forging complex relationships with multiple global financial service providers. A wealthy South African might have a private bank and investment banking relationship domestically, as well as offshore banking and… – Continue reading
Foreign Account Tax Compliance Act (FATCA) has been in force for a month and still more countries are joining the tax network. So far, 101 countries and financial jurisdictions have either signed or agreed to join FATCA. FATCA is aimed at identifying US taxpayers with offshore bank accounts and investments. Overseas… – Continue reading
THE National Tax Policy (NTP) has identified double taxation as one of the major hindrances to the growth of the Nigerian economy. Double taxation has become an issue paramount to investors and top executives of multinationals as income is generally taxable both in source and residence countries. In order to… – Continue reading
NEW DELHI: G-20, a group of developed and developing nations, is likely to press for adoption of “rapid timelines” by different countries for automatic sharing of information with a view to curb tax evasion. The issue of automatic sharing of tax information would figure prominently during the meeting of G-20… – Continue reading
MONTREAL • Eugene Melnyk, the billionaire owner of the Ottawa Senators and founder of drug maker Biovail Corp., is waging war against the company that now controls his one-time business. Mr. Melnyk alleges that Valeant Pharmaceuticals International Inc. is masquerading as a Canadian company to make use of this country’s… – Continue reading
The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 by the US to target non-compliance by US taxpayers using foreign accounts. FATCA essentially requires foreign financial institutions to report information about financial accounts held by US taxpayers, or by foreign entities in which such taxpayers hold a substantial… – Continue reading
On June 9, 2014, South African Finance Minister Nhlanhla Musa Nene and the US Ambassador to South Africa, Patrick H. Gaspard, signed an inter-governmental agreement (IGA) to support international efforts to improve tax compliance. The agreement includes provisions allowing the reciprocal exchange of information, which requires that financial institutions in… – Continue reading
SA and the US have signed an intergovernmental agreement aimed at improving international tax compliance Yesterday a reciprocal agreement was signed by Finance Minister Nhlanhla Nene and Patrick Gaspard, US Ambassador to SA that will force local financial institutions to report information about US account holders to the SA Revenue… – Continue reading
Johannesburg – South Africa and the US agreed on Monday to put into effect the Foreign Account Tax Compliance Act (Fatca), the SA Revenue Service (Sars) and US Embassy said. The agreement was signed in Pretoria by Finance Minister Nhlanhla Nene and United States ambassador to South Africa Patrick Gaspard…. – Continue reading
Impala Platinum Holdings Limited has rejected claims that the platinum mining companies have been involved in tax evasion activities. Implats refutes these allegations in the strongest possible terms and views the inflammatory and unsubstantiated allegation of criminal behaviour in a very serious light,” spokesman Johan Theron said on Thursday. “We… – Continue reading
The South African Reserve Bank (SARB) has relaxed regulations for private companies in the country, which now makes it possible to transfer intellectual property (IP) offshore, reports TechCentral. According to ENS Africa IP director Chris Bull, restrictions on intellectual property assets has been one of the key obstacles for local businesses… – Continue reading
BASSETERRE, St. Kitts, May 21st 2014 (CUOPM) – The St. Kitts and Nevis Federal Cabinet has paved the way for the signing of Tax Information Exchange Agreements (TIEAs) with Ireland and South Africa. Cabinet has approved the draft agreements between officials of the respective countries. “Those negotiation exercises have since… – Continue reading
Exchange controls have been relaxed to allow for the practice, though the rules remain fairly strict. South African technology firms and other companies can now transfer intellectual property (IP) offshore thanks to a relaxation of exchange control regulations in this regard. One of challenges that private companies in South Africa… – Continue reading
May 7th, 2014 (InsideCostaRica.com) Tax evaders and privacy advocates beware – Costa Rica and 46 other countries signed up yesterday to automatically share banking, financial, and tax information in what the OECD is touting as a major step towards cracking down on global tax evasion. The Declaration on Automatic Exchange… – Continue reading
• Partnership creates end-to-end solution for enabling and ensuring FATCA compliance, including: data consolidation, indicia identification, additional KYC data/document capture, alerts/notifications and dashboards to monitor compliance, withholding calculations and remittance, and tax reporting. Banking analytics, risk and compliance pioneer, iCreate, today announced a strategic partnership with tax information reporting leader,… – Continue reading
The National Treasury and the SA Revenue Service are discussing entering into an inter-governmental agreement (IGA) with the United States on a foreign tax compliant act, Sars said on Thursday. “The wording of a draft IGA has now been agreed upon and will be signed at governmental level as soon… – Continue reading
