Tax proposal grossly unfair

THE proposal by national Treasury that South Africans living abroad be taxed in South Africa on their foreign earnings, if they are not a tax resident in another country, is grossly unfair, also not practical or constitutional.

They mostly are not permanent South Africa residents who work abroad on contracts and return home afterwards. These are people who have emigrated over time since 1994 in search of employment.

Since they do not reside in South Africa they would not benefit from paying taxes and are not even permitted to participate in our national elections.

Account also needs to be taken of the fact income earned is much higher in most countries outside South Africa due to a higher cost of living and that foreign currency earnings are disproportionately exaggerated by the fluctuating weak rand.

How do you arrive at an equitable figure to tax? Taxing these people might also have the unforeseen consequence of forcing large numbers to return to South Africa if the benefits of working abroad are eroded by taxes.

This will not help the unemployment problems currently experienced by the government. This proposal, like the recent amendments to immigration legislation, does not sound as if it has been well thought out – rather like a desperate smash and grab attack on absentee South Africans to fund a bankrupt Treasury.

D E Aldendorff, Jeffreys Bay