Wealthy South Africans and Their Trusts
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- Опубликовано: 17 май 2012
- (www.abndigital.com)
The South African revenue service has around 2300 wealthy individuals on its register. Members of this group contribute around R1.7 million each in tax annually, but some use trust funds to channel and hide their assets and incomes. SARS has identified trust funds as one of their key focus points in its compliance programme this year.
Joining ABN's David Williams for more is Marteen Michau, Head of fiduciary & tax at Sanlam Private Investments.
If the money is already in an offshore haven it's already inaccessible to SA authorities since offshore trustees aren't accountable to foreign court orders including South Africa's. It's not called Asset Protection for nothing.
Forcing the money out of the rich peoples hands will not bear fruit because rich people are far smarter than the bureaucrats and have hired the smartest bureaucrats to assist them in ensuring they beat the system.
A better approach than trying to force their hand would be to change laws to encourage them to invest and pay taxes domestically such as halving taxes overall. This has proven in many countries to greatly grow economies and increase the overall number of taxpayers, foreign investment and standards of living for everyone.
The South African government needs to relinquish it's attempts to control the economy of it wants to see more money.
No one wants to lose half their wealth to a Government who they know will squander their wealth.
The problem is as young south african ages 23-35 myself included is not financially educated from a young age for example the wealthy or should I say financially secure educate there family members of how to avoid financial strain. I've started to educate myself from the age 28 only on how money flows by investing in rich dad poor dad and the surrounding myself with people that better understand this land scape and I'm still learning. Thank for your post appreciated.
You speaking the truth
Wild how something can be called legal & impermissible at the same time.