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Cape Town - The South African Revenue Service (SARS) has extended its exchange control amnesty, and associated amnesties for the evasion of income tax, donations tax and estate duty in respect of funds earned or transferred offshore, to cover other associated taxes such as Pay-As-You-Earn (PAYE) and Value Added Tax (VAT), which were previously omitted from the original Exchange Control Amnesty Law.
Announcing the move on Thursday, SARS said it had amended the amnesty law in December 2003, in order to accommodate those people who had been reluctant to apply for exchange control amnesty because they had committed offences in terms of these other taxes, without affecting their liability for the taxes.
Although those declaring their liability will still have to pay, they will not be obliged to pay penalties or additional taxes on the previously undisclosed amounts.
"People who have evaded taxes that are not covered by the amnesty and have taken these amounts offshore may now apply for amnesty," SARS said.
"They must approach their SARS offices within 60 days of applying for amnesty to declare the evaded tax and make arrangements for payment. If they do not, their amnesty applications will be rejected. If their amnesty applications are approved but they do not regularise their VAT and PAYE obligations, the approvals will be void.
"To encourage these people to come forward, SARS will not raise additional tax or penalties on the evaded taxes that they now disclose or prosecute them for the evasion. Specific SARS officials have been identified to deal with their cases. These officers have been authorised to make practical arrangements regarding the calculation of interest on the evaded tax and to negotiate the payment period for outstanding amounts," SARS said.
A list of the identified staff at SARS offices appears on the Amnesty Unit (www.amnestyunit.gov.za and SARS (www.sars.gov.za websites. The closing date for applying for amnesty is 29 February, 2004.
People who are interested in the technical detail of the change that was made to the amnesty law will find it in section 219 of the Revenue Laws Amendment Act, 2003. Further details are available in the Explanatory Memorandum on the Revenue Laws Amendment Bill, 2003. Both documents are available on the SARS website.