Some Post-Amnesty Conundrums

Now that most applicants who sought amnesty under the Amnesty Act (or, to give it its full name, The Exchange Control Amnesty and Amendment of Taxation Laws Act No. 12 of 2003) have received their amnesty approvals, many will be turning their attention to the tax-efficiency of their offshore structures, which would also be viewed in conjunction with the costs of maintaining them.

The purpose of this Tax Werks is to give an overview of the tax consequences of the more common structures that are in place, with particular reference to the differing treatment of foreign exchange gains and losses which would apply to them. And with the current volatility in both the rand and the major hard currencies in which South Africans typically invest, this could be a significant factor going forward.