Sars special voluntary disclosure programme yields 500 applicants

The South African Revenue Services (Sars) is unlikely to reach its R40-billion target from the promulgated tax amnesty for undeclared foreign assets.

The Business Day reports that about 499 applicants approached the revenue collector to take advantage of the special voluntary disclosure programme, which allows taxpayers with undeclared foreign assets to disclose them before August 31, 2017.

It is reported that tax experts are blaming the low disclosure rate on the levies the applicants had to pay and the complexity and risk of the process.

Taxpayers are supposedly required to provide a detailed explanation of how and when the money was sent offshore.

The most common assets declared under the programme have so far included offshore bank accounts, offshore property and discretionary trusts.

The programme was introduced on the recommendation of Judge Dennis Davis, who chaired the Davis Tax Commission.

Meanwhile, the publication further reported that with two months to go until Finance Minister Malusi Gigaba tables this year medium-term budget, government revenue looks likely to record a R50-billion deficit.

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