Special Voluntary Disclosure Programme (SVDP) Update

The primary intention of the SVDP is to provide taxpayers with a window of opportunity to regularize their affairs prior to the introduction of the Automatic Exchange of Information dispensation. (It is therefore NOT the revenue which may be collected.) Audits and investigations are not being halted pending the commencement date of the SVDP and taxpayers wishing to make use of the SVDP are currently still open to audit and investigation.

Effective date of SVDP is likely to be 1 October 2016 and will last for a 6 month period:
•The Tax and Exchange Control SVDP can be accessed independently
•Taxpayers can still make use of the normal VDP process to regularise their affairs
•Legislation may be introduced which states that SARS may notify taxpayers where information is obtained under an International Tax Agreement (AEOI) that the taxpayer is disqualified from accessing the SVDP.

Comments adapted from a Tax Webinar presented by the SAIT (South African Institute of Tax Practitioners) during July 2016

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