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If you have secret offshore assets, chances are Sars knows about them
Common Reporting Standards (CRS) mean information is being exchanged with 87 foreign countries â and the figure is growing. 00:01
Coming clean and volunteering information before Sars conducts an audit is likely to result in a better and more sympathetic outcome. Image: Shutterstock
If you have offshore assets that you expected to keep a secret from the South African Revenue Service (Sars), chances are it already knows about them
Thatâs because of an information sharing arrangement known as Common Reporting Standards (CRS) that is already in place in 87 jurisdictions, and that figure is growing.
In 2010, Canada Revenue Agency auditors unearthed a scheme they called a “sham” that ultra-rich Canadians were using to dodge taxes. But previously unreported court records obtained by CBC’s The Fifth Estate and Radio-Canada’s Enquête show it didn't stop then. Some taxpayers continued to exploit the tax dodge for several years without officials realizing.
(Partner Content) When you permanently emigrate from South Africa, you should inform SARS that you are no longer tax resident. The earlier you get this piece of admin out of the way, the better for you in the long run. Here’s why.
iAfrica 16 seconds ago 3 min read
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In line with its pledge earlier this year to increase its focus on wealthy individuals and offshore holdings, the South African Revenue Service (SARS) has started contacting South African taxpayers with financial accounts abroad to request information. The aim is to see how much has been disclosed in prior tax returns and to assess any underpayments.
SARS’ newfound reach is thanks to the Common Reporting Standard (CRS), which sees 87 countries around the world sharing the account information of the world’s taxpayers. The CRS was born out of the American initiative, the Foreign Account Tax Compliance Act (FATCA), essentially widening the scope internationally. CRS aims to collect information on the member states citizens’ offshore assets, and has been adopted by many countries as a method to supplement their fi
SARS is targeting rental properties in South Africa – what you should know
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warnedproperty owners who receive rental income from hosting fee-paying guests against their tax obligation.
The tax collector emphasised that property owners who host fee-paying guests, and receive rental income, have the same obligation to declare such income to SARS, just as homeowners letting out their property.
Although the legal position is fairly clear, it appears that SARS may have identified the need to focus on improving taxpayer compliance in the property sector, said Ursula Diale-Ali, an associate designate at legal firm Cliffe Dekker Hofmeyr.
“In particular, amongst property owners who derive rental income from hosting fee-paying guests, and therefore on an ad hoc basis, rather than property owners who enter into lease agreements for longer periods of time,” she said.