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Property/investments and Exit Tax.


Shampoo

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I formally emigrated via SARB and SARS but as I may return or perhaps my kids may, I did not sell my property or stocks on the exchange.

Are these now deemed as disposed of and I now need to pay CGT on the present value as an Exit Tax?

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As no one replied to your question yet let me attempt that. Surely when you did the financial emigration process through SARB & SARS you should have mentioned about the additional investments i.e the shares & property. If not mistaken then that would have been put in a blocked account with estimated values. If so then it has been cleared to be paid out but the rules around how and when I'm not sure. Often you cant take it as a lump sum and only do a yearly withdrawal. Contact @Tanya at FX Capital and she will be able to point you in the right direction.

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we were told that even if you dont officially emigrate, if you leave the tax system you are deemed to have disposed of your assets and are now liable to cgt in sa.

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On 2/20/2016 at 8:31 PM, Shampoo said:

I formally emigrated via SARB and SARS but as I may return or perhaps my kids may, I did not sell my property or stocks on the exchange.

Are these now deemed as disposed of and I now need to pay CGT on the present value as an Exit Tax?

Do you refer to Exit tax in SA or Australia. On tax departure from SA you would have or should have paid the exit tax on all assets excluding exempt assets. Exempt assets is title deed properties held in your personal name.

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11 hours ago, ottg said:

As no one replied to your question yet let me attempt that. Surely when you did the financial emigration process through SARB & SARS you should have mentioned about the additional investments i.e the shares & property. If not mistaken then that would have been put in a blocked account with estimated values. If so then it has been cleared to be paid out but the rules around how and when I'm not sure. Often you cant take it as a lump sum and only do a yearly withdrawal. Contact @Tanya at FX Capital and she will be able to point you in the right direction.

FX Capital is not tax advisers and where there is a blocked account the call is made by the authorised dealer (AD) operating the blocked account. The question as I see it does NOT deal with the matter the AD or FX deals with. The question is on the retention of assets and having the assets when you return to SA. If it is the children that return to SA and you want them to own it, donate before you return as SA has donations tax. ATO does not levy donation tax but may collect CGT. In SA the title deed property will continue at the base cost you had BEFORE emigration, there is NO step up to MP336(b) values. The comment above is thus partly incorrect. The other assets would have had an increase in base cost, but that is for ATO exit tax. For SA CGT, you have yet another increase in base cost at the market value the day you return to SA as a tax resident. 

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On 2/23/2016 at 4:28 PM, Hugo2 said:

FX Capital is not tax advisers and where there is a blocked account the call is made by the authorised dealer (AD) operating the blocked account

 

I fail to see the relevance of this statement. Surely like any other business they do have a network of advisers/partners they deal with and can refer people too. I'm sure you do the same for things falling outside your sphere of expertise. May I suggest that instead of downplaying other companies about what they are and aren't, rather give people your best answer and let them decide self on who is the most obvious expert and who they would like to do business with. 

Just a thought!

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This is getting more and more confusing. I understand that people in the business will give cryptic answers to this question as they need clients. Nothing wrong with that.

My MP336(b) values are estimated and are out by at least R100k. I have a blocked ZAR account with FNB and with my broker for my JSE investments.

To date, I have no idea of what to pay or if I have to pay and I was hoping someone has been through this.

 

I quote here an email reply to my question from an esteemed adviser.

"Once you have left through SARS and taking into account the tax treaty rules, you face no further taxes i.e. no exit taxes and no CGT.

 

 

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  • 3 weeks later...
On 2/24/2016 at 11:30 AM, ottg said:

 

I fail to see the relevance of this statement.

Just a thought!

 

Ottg

 

yes, one would have expected SARB to allow them to use their network of service providers but the comment is extremely relevant as it is a SARB rule. I have many clients ex FxCapital now with blocked accounts that would have loved to used Fx again, but they are not allowed to. So please do not see it as a negative comment, it is current SARB rules and therefore relevant. 

Edited by Hugo2
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