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Disclose your offshore finances, MPs urge

Cape Town - ANC MP Thandi Tobias in Parliament on Tuesday urged taxpayers who haven’t disclosed their offshore finances to do so and make use of the “window of opportunity” this programme provides.


MPs were debating the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, which among other things will allow for the implementation of a Special Voluntary Disclosure Programme.

Such a programme, gives taxpayers an opportunity to declare their undisclosed offshore income and assets to legalise their financial affairs.

Tobias said government could use the money received from the Special Voluntary Disclosure Programme for taxpayers to educate young people.  

Alf Lees from the Democratic Alliance (DA) said although his party does not “much like” the Special Voluntary Disclosure Programme “as it allows people who have broken the law to buy their way out of trouble” it is necessary.

“[That is] because President Zuma and the ANC have stuffed up the economy and taxes are going to be increased,” Lees said.

“One way of limiting the ANC tax increases is to encourage the billions of rands hidden abroad to be disclosed, to be taxed and then to continue to be taxed every year thereafter.

Lees added that this “special offer delinquent taxpayers” must not be repeated and indeed it should not need to be repeated as financial disclosures between states come into operation in 2017.

“Thereafter naughty taxpayers can still run but they will find it very difficult to hide.”

Ntombovuyo Mente from the Economic Freedom Fighters (EFF) said in her speech that the Voluntary Disclosure Programme is “reactionary and not the way forward”.

“A 2005 study found that capital flows out of the country amounts to 6.6% of our GDP,” said. “This amounts to over R200bn’s worth of money lost every year.”

She said the funds that will be collected from voluntary disclosure will be a mere “drop in the ocean” considering the bigger picture of illegal capital flows.

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