SARS Voluntary Disclosure Programme

Non-disclosure to SARS may attract massive penalties. By disclosing under the SARS Voluntary Disclosure Programme, taxpayers can avoid criminal prosecution and regularize their tax affairs. A successful VDP application entitles the applicant to a penalty waiver and the settlement of outstanding tax payments with SARS.

Before SARS comes knocking, taxpayers should become compliant through the Voluntary Disclosure Programme. The VDP application process may be intimidating for taxpayers, but our team of attorneys can securely assist you through it.

START YOUR VDP APPLICATION

WHEN ARE YOU AT RISK, AND SHOULD YOU CONSIDER APPLYING FOR VDP?

Rental income from leasing offshore property.
Capital gains on property disposition.
Foreign investment’s interest and dividends.
Distributions from offshore trusts to South African beneficiaries.
Earnings for employment services rendered outside of South Africa.

MORE INFORMATION ON VDP AND THE REQUIREMENTS

VOLUNTARY DISCLOSURE RELIEF
SARS allows taxpayers to avoid criminal prosecution and regularise their tax affairs by making a disclosure under the VDP. A successful VDP application allows for an applicant to receive waiver of penalties and to settle outstanding tax liabilities with SARS.

The benefits of a successful VDP application:
- Regularise tax affairs;
- Remittance of 100% of understatement penalties;
- Remittance of 100% of administrative non-compliance penalties;
- Transfer foreign funds back to South Africa “clean”; and
- Amnesty from criminal prosecution.

COMMON REPORTING STANDARDS
South Africa is one of the signatories who implements the Common Reporting Standards (CRS), in terms of which tax and financial information is exchanged on a global level in order to minimize worldwide tax evasion. As of 1 September 2017, South Africa has commenced with the exchange of data with other signatories of the CRS to ensure transparency and more efficient tax administration.

Financial institutions will give personal account information to SARS on an annual basis which will expose any offshore transactions as well as offshore investment structures.

In that regard, our experience is that many taxpayers are at risk for failing to disclose the following:
- Rental income earned from lease of foreign property;
- Capital gains on disposal of property;
- Interest and dividends earned from foreign investment;
- Offshore trust distributions to South African beneficiaries; and
- Income for employment services performed abroad.

REQUIREMENTS FOR A VDP
It is imperative that a VDP application complies with all the requirements stipulated in the Tax Administration Act.

The requirements for a valid VDP application are that the disclosure must:
- Be voluntary;
- Involve a default which has not previously been disclosed by the applicant or representative of the applicant;
- Be full and complete in all material aspects;
- Involve the potential imposition of an understatement penalty in respect of the default;
- Not result in a refund due by SARS; and
- Be made in the prescribed form and manner.

BENEFITS OF A SUCCESSFUL VDP APPLICATION
- Regularise tax affairs.
- Remittance of understatement and administrative non-compliance penalties.
- Amnesty from criminal prosecution.

WANT TO KNOW MORE?
Click here to view FAQ’s on VDP.

WHY US?

Our specialised voluntary disclosure tax team and chartered accountants regularly assist taxpayers to make disclosure to SARS under their Voluntary Disclosure Programme, which is regulated under the Tax Administration Act. We are a team of attorneys and any information shared with our attorneys is fully protected by legal professional privilege.

What steps are available to you?

WE CAN ASSIST YOU NO MATTER WHAT YOUR TAX NEEDS ARE.
SPEAK TO OUR TAX ATTORNEYS TODAY!

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SARS Voluntary Disclosure Programme

WHEN ARE YOU AT RISK, AND SHOULD YOU CONSIDER APPLYING FOR VDP?

MORE INFORMATION ON VDP AND THE REQUIREMENTS

VOLUNTARY DISCLOSURE RELIEF

COMMON REPORTING STANDARDS

REQUIREMENTS FOR A VDP

WHY US?

What steps are available to you?

WE CAN ASSIST YOU NO MATTER WHAT YOUR TAX NEEDS ARE. SPEAK TO OUR TAX ATTORNEYS TODAY!

This Website Uses Cookies

WE CAN ASSIST YOU NO MATTER WHAT YOUR TAX NEEDS ARE.
SPEAK TO OUR TAX ATTORNEYS TODAY!