SARS’ Sherlock Holmes Approach to Foreign Income
The number of South Africans earning income abroad has continuously been on the rise. The majority percentage of the South African Revenue Service’s (SARS) tax collections have also consistently been from personal income. These two factors combined, in the context of our residency-based tax system, has massively piqued the interest of our revenue service in […]
Flying Towards A Tax Saving_Double Tax Agreement Or Financial Emigration
The common misconception amongst expatriates, however, is that getting on a plane and leaving South Africa will trigger the South African Revenue Service (“SARS”) to automatically regard them as non-resident taxpayers. This is certainly not the case, as the correct process must be followed to cease one’s South African tax residency status. If not, SARS […]
SARS’ Smoking Gun? Estimated Tax Assessments through Lifestyle Audits
Lifestyle audits were initiated by SARS back in 2007, however actual action earnestly began only a few years ago with the arrival of SARS Commissioner Edward Kieswetter. These audits are conducted when SARS suspects that the taxpayer is not declaring all his or her income and thus is underpaying the factual tax due.
SARS Ups The Ante On Expatriates Trying To Cease Their Tax Residency
SARS has started to make good on its promise in the 2020 Budget Review by enhancing their verification and audit processes to accurately review the compliance and tax statuses of South Africans abroad.
Alarm Over Growing Brain Drain From SA
As emigration by skilled South Africans rises, experts in the auditing and insurance sectors have warned this will weaken the country’s skills base and reduce the pool of wealthy individuals, whose spending on goods and services support many businesses.
SARS Tracking Flights As Part Of Stricter Non-Resident Verification Process
Expatriate taxpayers awaiting approval of their non-resident status may be surprised to discover that SARS can track their flights into and out of South Africa.
Non-Resident Tax Status Reversed? Read This Before Reapplying To SARS
SARS introduced its Tax Non-Resident Confirmation letter in 2021, and it now appears that emigrated taxpayers, whose residency status was previously disclosed to SARS as non-resident, are now finding their status has been reset to ‘resident’. This may possibly have been due to a bug, or one arm not speaking to the other, when SARS […]
Momentous Wealth Taxation Event Lifts Veil On Offshore Structures
A momentous event, held on 22 August 2022, drew a massive audience, comprising many well-known high net worth VIPs, senior SARS officials and officials from other African Revenue Authorities, tax heads in various capacities, top wealth managers, academics and other notable attendees.
Expats Tax Residency Reset: Is SARS Constantly Shifting Goalposts?
The South African Revenue Service’s (“SARS”) focus on South Africans abroad was first revealed in the 2017 Budget Speech. Their reasons were only revealed in the pursuant Parliamentary debate, where in the Q&A session it was shared that National Treasury and SARS had been keeping a close eye on expatriate tax compliance.
