EXTENDED DEADLINE FOR DECLARATION OF OFFSHORE INTERESTS
The 2016/17 SA Revenue Service special voluntary disclosure programme, or amnesty application period, has officially opened, and the deadline has been extended to June 30. The tax penalty inclusion rate has also been reduced from 50% to 40%, giving South African individuals and companies more time to be tax compliant.
Currently, you are allowed to invest up to R10 million outside South Africa each year, provided that you have been issued with a tax clearance certificate.
Tony Barrett, a financial advisory wealth manager at FNB, says that if you wish to retain assets offshore, a penalty of 10% on the value of the assets, as valued on February 29 this year, will apply.
“The penalties must be paid out of the offshore funds. If you elect to remit the assets back to South Africa, a penalty of only 5% is payable.
“If a lack of liquidity makes this a problem, the levy can be payable from local funds, but at a levy of 12% – and the assets will remain offshore,” he explains.
COMPETITION PHISHING SCAM
FNB has issued a warning about a scam involving airtime sales. The scammers call under the pretence of being legitimate FNB staff members and will tell you that due to your regular purchase of airtime and data, you are eligible to enter a competition where you stand a chance to win a substantial amount of money.
They then ask for your cellphone number and ID number.
However, to enter the “competition”, you have to verify your details by entering your card number and PIN. There is no such FNB competition and this is simply a scam to obtain your personal information and gain access to your banking details.
You can report fraud to FNB on 087 575 9444.
SARS LATE-SUBMISSION PENALTIES
With only three weeks left for tax return submissions, the SA Revenue Service (Sars) has tabled fixed costs for late submission/admin penalties.
“Currently, the penalty is only collected for late or non-submission of returns. Any taxpayer who doesn’t submit their return will be charged this penalty and has to pay the penalty to Sars,” states the Receiver.
The penalty fee is comprised of fixed-amount penalties, as well as percentage-based penalties.
“The penalty amount that will be charged depends on a taxpayer’s taxable income and can range from R250 to R16 000 a month for each month of noncompliance,” adds Sars.
The fee will be added on a monthly basis until all your outstanding tax returns have been submitted and all outstanding money has been paid.
Danita de Wet, a tax practitioner from Tax Tips, says: “Penalties that have already been added to your account for not submitting tax returns timeously will not be waived.
“The minimum penalty for an individual is currently R250 per return per month. This means that, where four tax returns are outstanding, a minimum penalty of R1 000 per month will be issued,” she says.
NEW INSURER ON THE BLOCK
Virgin Money recently launched Virgin Money Insurance in partnership with AIG Insurance. The offering, which was previously available under a partnership with Telesure, has been relaunched and will make use of digital platforms to allow you to apply for and receive an insurance quote in less than five minutes.
Other features from Virgin Money Insurance include:
If you are involved in an accident that is not your fault, the claim will not affect your three-year no-claims bonus.
The default option on your car insurance will be replacement value, which means you will be insured so that you are able to replace your car with one that is the same as the one you own.