WATCH: Putting the squeeze on the wealthy

2018-02-21 07:56
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Johannesburg - The introduction of a new wealth tax has been a hot topic for some time.

However, Standard Bank does not believe it's going to come in, particularly this year.

"As everyone may be aware, the Davis Tax Commission has been researching this, and looking at introducing this for a couple of years now. The reality is that after quite a lengthy process of interacting with industry leaders, the answer is no – probably not," says Philip Faure - Global Head of Wealth Advisory at Standard Bank Wealth and Investment.

He said there’s a number of measures that SARS can use to increase contributions from the wealthy. They could simply increase personal tax. It has had an increase in the last 2 years, but it could go up by a couple of percentage points again.

"If they increase the tax on individuals, they probably also need to increase the dividends withholding tax of companies, because you can’t have an arbitrage situation there."

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