In the 2016 Budget Speech delivered on 25 February 2016, the
Minister of Finance announced a special voluntary disclosure
programme ("Special VDP") to encourage
taxpayers to regularise violations of tax laws and exchange control
regulations. This article briefly examines the benefits of the
Special VDP and why potential applicants should begin preparing to
submit their application in anticipation of the 1 October 2016
commencement date.
Automatic exchange of information between tax authorities
The Common Reporting Standard for the automatic exchange of
information, developed by the OECD, provides for the formal and
organised automatic exchange of information between participating
tax jurisdictions in respect of information reported to them by
financial institutions. At this stage, close to 100 countries have
committed to participate in this process and, as an early adopter,
South Africa will begin receiving information during September
2017.
