However, SARS is going to chase those who owe it, wealthy or not, said Davis.
So, what SARS has started doing is a “comprehensive examination” of high-net-worth individuals and those who are living larger than their income taxes suggest.
“There is a comprehensive study being done at the moment in order to see just the extent of the accuracy of tax returns.
Such investment structures allow South Africans to invest in offshore vehicles which, in turn, invests in local assets.
He said SARS, the Reserve Bank and the Financial Intelligence Centre are also increase their cooperation so that they can triangulate to see what funds going out or suspicious transactions taking place.
Davis said SARS has observed “interesting activity” on the Bitcoin market.
Davis said while the Davis Tax Committee which he chaired did look at international pensions in the past, it made no recommendations about taxing offshore pensions.
So, only if there is no genuine pension, and the offshore structure is nothing more than a normal investment, SARS will look at it.
To the extent that if you have a reliable one which will give you good returns, be my guest.
Davis said while a lot of these tax leaks SARS is trying to close affect high-net-worth individuals, they are not the only target.