On 9 July 2015 the South African Revenue Service ("SARS") issued a media statement informing all South African resident taxpayers, who hold foreign bank accounts, that an investigation was underway and taxpayers were therefore requested to make use of its Voluntary Disclosure Programme ("VDP") to regularise their tax affairs.

If you have a foreign bank account, and have used that bank account to evade your local or international tax obligations, you have until 12 August 2015 to declare this information under the VDP, after which time SARS will start their auditing process.

Clients are reminded that under the VDP, you will still have to pay any South African tax and the interest which is due on that tax.  However the advantage of making a disclosure under the VDP is that you will be granted  relief from penalties and further, you will not be subject to any criminal prosecution.

Please contact our Tax Department if you would like assistance in making use of the VDP with SARS.