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INTRODUCTION OF EXCHANGE CONTROL AMNESTY AND
AMENDMENT OF TAXATION LAWS BILL, 15 MAY 2003
BY THE HONOURABLE MINISTER OF FINANCE,
TREVOR A MANUEL, MP
Introduction
Madam Speaker, it gives me great pleasure to introduce the
Exchange Control Amnesty and Amendment of Taxation Laws Bill.
The Bill has benefited immensely from the extensive deliberations by
the Portfolio Committee on Finance. I would like to thank
Ms Barbara Hogan for her leadership and for the valuable comments
provided during the hearings process. It is heartening to realise that
in terms of tax policy design, efforts by PCOF continue to add
transparency to deliberations that have reached a level of maturity
envied by many other jurisdictions. Government attaches great value
to the contributions of the public, further enriching the Bill. Moreover,
we firmly believe that this Bill sets the scene for an exciting period in
which many South Africans are invited to:
take this opportunity, amidst an unfavourable international
economic climate, putting their trust into this economy and their
funds;
divulge their contravention of Exchange Control Regulations
and certain tax acts, thereby regularising their affairs in respect
of foreign-held assets;
disclose foreign assets amidst Government’s efforts to facilitate
the repatriation thereof; and
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extend the tax base by disclosing previously unreported foreign
assets.
RATIONALE OF THE EXCHANGE CONTROL AMNESTY BILL
Despite the existence of exchange controls, many South African
individuals and entities have a long history of shifting assets offshore
illegally in a variety of ways. The foreign income from these assets
typically goes unreported in terms of certain tax acts.
Government has rightly taken the position that contraventions of
Exchange Control Regulations and tax should not be tolerated.
However, in recent years, it has become apparent that many
individuals and entities wish to repatriate their foreign held assets
voluntarily and regularise