Family sending money from SA to Oz as gift

[Werns]

Hi guys,

My mother-in-law is wanting to send us a rather large sum of money (R200,000).

What would be the best way for her to do that. I know people use CashKows to send RA etc. but is it a good idea to do it for money like this or should she just go to her bank?

Thank you

[slabbert]

best via the bank in my opinion - just check the ATO website what the annual limit is on overseas monetary gifts - it may be worthwhile splitting between

you and your partners bank accounts

[Brad76]

She's allowed to transfer up to a R1,000,000.00 annually without a tax clearance certificate. Cashkow's / Exchange4free etc can all help with the transfers and at rates better than the bank would give you plus no charges on that amount of money!

There's also a limit from a tax perspective relative to donations / gifts and she may be liable for income tax locally on any amount given above that limit

[Heymanse]

My mother decided to open a FNB savings account and sent the debit card per registered post to me. She puts money into the account every month and a little bit extra if it's someone's birthday or xmas. I can use the card at any atm or even use it when I need to pay for groceries or any other retailer. It makes it easier for her to control how and when she wants to pay money into the account an she doesn't have to declare anything to SARS and I don't have to declare anything to the ATO. When she opened the account she only had R20 in it. Once the card was in my possession, she began transferring the money. Family sometimes wants me to buy things for them and mail it to them. They then just pay the money into the FNB savings account.

[SSlot]

cashkows can most certainly assist with this and will save your mother-in law money both in terms of the cost of transferring the funds and a better exchange rate.

Please email forex@cashkows.com or Andrew@cashkows.com and they will assist with this transfer.

[CloudNine]

We recently transferred funds to our daughter's NAB account as she moved to Sydney at the end of August. We used Currencies Direct. Tim Lewis of Currencies Direct charged us 1% above the spot rate at time of transfer. NO other charges. He was very professional and efficient. We will be using again them when we move in January.

His details are:-

Tim Lewis

Head South
African Dealer

Currencies Direct | Suite
208, Clock Tower Office Block, V&A Waterfront, Cape Town, 8001

Office Tel: +27 (0) 21 418 0105 | Office Fax: +27 (0) 21 418 0355 | Mobile: +27 (0) 74 919 4044

E: tim.lewis@currenciesdirect.com | Skype: tim.lewis.cd| www.currenciesdirect.com

[StevePorter]

My mother decided to open a FNB savings account and sent the debit card per registered post to me. She puts money into the account every month and a little bit extra if it's someone's birthday or xmas. I can use the card at any atm or even use it when I need to pay for groceries or any other retailer. It makes it easier for her to control how and when she wants to pay money into the account an she doesn't have to declare anything to SARS and I don't have to declare anything to the ATO. When she opened the account she only had R20 in it. Once the card was in my possession, she began transferring the money. Family sometimes wants me to buy things for them and mail it to them. They then just pay the money into the FNB savings account.

If I understand you correctly, you are drawing funds via an ATM in Australia using a card connected to an FNB account in South Africa. If this is indeed the case I would urge you to speak to FNB as technically this is a breach of exchange control which can result in criminal prosecution and in some cases asset forfeiture. Remember also that FNB will be able to see where the money is being withdrawn. Please feel free to contact us at cashkows.com if you want a general chat about the situation and possible solutions. We're not going to charge you anything for a brief chat and some general assistance!

Steve Porter

Director

cashkows.com