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PaulD

RA payouts, SARB, SARS

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PaulD

For those going through the process of financial immigration, specifically dealing with SARB and SARS.  SARS especially seems to be challenging at the moment.  So any advice or questions.  Share your joy and frustration.

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PaulD

I used e filing to request tax compliance/clearance certificate.  Now they have requested a whole lot of documentation, was not expecting on audit on this!

In order for SARS to process your application, please submit the following relevant material (if applicable) quoting the case number above:
- Details of the financial institution dealing with your settling in allowance
- A certified copy of the final application form (Request for settling in allowance MP336) submitted to a foreign exchange dealer
- Detailed statement of assets and liabilities for the previous three tax years (this should include disclosure of all investments, loan   accounts and distributions from local and foreign companies, trusts, etc.)
- Details, including estimated values of any pension, provident, and/or retirement annuity fund
- Details, including estimated values of any insurance policies
- Details of any Trust in which you have an interest in or are a beneficiary
- Details of all shareholdings

What does this mean???  All supporting documents for last three years? Cannot be!
- Relevant material for tax submissions of the previous three tax years (this should include interest schedules, CGT calculations,   financial instruments, etc.)

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TheSilentBang

@PaulD we are currently busy with the same process. Everything you mentioned is correct. We were just warned that SARS will sometimes issue you with the incorrect type of tax clearance. You have to start at your bank and get the MP336 form. Then take all your documents to SARS for emigration tax clearance. You will need your COPR for this, as well as all the documents you mentioned. The reserve bank will then contact you (if i understood correctly) once all your forms are correct. They will then work with you to block your bank account and have all your annuities paid out. There is obviously a fee for this service as well. FNB quoted us between R1500 - R2500 and the process takes 4 - 6 weeks. 

Please let us know if you find out anything else. We attempted going to SARS to shed some light on the matter, but with it being tax season we turned around very quickly. Will wait till we have everything in hand and spend the day there if needs be.

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FaithFUL

@PaulD, I strongly suggest that you take all of your papers to a SARS consultant & let them submit it. Why do that when you can do it online? Because the chances are very good that your clearance will be rejected & they don't give you a reason why it was declined.

We've just applied for a foreign investment tax clearance on behalf of a client which consisted of loans through her hubby's business, sale of her own shares, sale of property & savings accounts. SARS kept on rejecting it & the call centre wasn't helpful at all.

We eventually took the client to a tax consultant at SARS who confirmed that all the documents were in order, there was no reason for it to be rejected. Now get this - the tax consultant completed the application form online & guess what? It was rejected because he didn't tick the box that the ID10T on the other side wanted him to tick, even thought he ticked all the right boxes that indicated what the funds were made of!!

Anyway, he then could follow up & submit a new application & tick the right box and ta-da - the clearance certificate was approved. He could actually phone & speak to the right people, someone that us 'outsiders' don't have access to, and get it sorted out. He couldn't believe it either! We almost lost this client due SARS being SARSholes, but she could see that our ducks were in a row when we took her to SARS & that SARS was being very difficult.

Some back ground info: our client had to BEG a Swiss banking institution to open up an account for her. They refused as they say it's a pain dealing with South African government. She can now understand why!!

I realise that you are probably doing a financial immigration clearance which would be different from a foreign investment clearance, but be prepared for some difficulty. All the best!!

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Druce

Not sure if this is the correct thread to ask this as I have seen the subject being discussed but cant seem to find the link now.

What are the pros/cons of financial immigration?

We dont have any RA's. Only my pension (which we will get paid out after I resign) and my wife's business (not registered, she is registered for Income Tax like me) which we are in the process of selling.

Will there be any issue in not immigrating financially other than having to file your tax return with SARS each year?

 

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PaulD

@Druce We are doing the financial immigration to get cash out of RAs mainly.  Not sure what else it would help with, would happily file tax returns for a few years and not deal with SARS now!

@TheSilentBang  As you going through same process, been wondering about the  value of "Insurance Policies"(Assets: tax clearance request form) a combination of RAs and life cover.  So if we have life cover for 5 million, is this considered an asset even if it has not been cashed(assuming ticker still keeps going).  And is this also added to amount of money been transferred out?

 

@WannaB ExpatThanks for advice will chat to SARS about using a consultant

 

SARS audited my income tax return.   I uploaded all docs on efiling.  Was told all was in order.  Then I was told i need to go in with all hard copies to verify my details.  5 hours at SARS, what a waste of time especially when one is trying to get ready to change countries... so of all the incompetent government agencies in SA,  SARS  is my public enemy No1 at the moment.

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Linda

One reason to financially emigrate is that unless you have formally financially emigrated you cannot repatriate any inheritance funds that you receive after you have emigrated, unless you have done the financial emigration thing - you need that all important Reserve Bank clearance number to get the funds across, believe me folks when I tell you as much as it is a headache to get this all done whilst still in South Africa, it a MUCH bigger headache to get anything processed from Canada after the fact, search the Forum for threads that Harry posted here about the battles he has had with the system in South Africa to get funds out, giving you pearls of wisdom here.........

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TheSilentBang

@PaulD I don't believe that life insurance is an asset as it is no use to you unless you pass away. The form we received at the bank is pretty straight forward (MP336) and will tell you what needs to go where. We can't be of much help with all the sections as we sold all our belongings and settled our debts ages ago and basically only have RA's that need to pay out. So out of 5 pages of info we have a tiny section to complete. I know SARS is a pain, but get all your documents that you think you might need and take it there to fill in your forms correctly with somebody. We are still waiting for our passports and COPR and will then go spend the day there to figure everything out. Will let you know how it goes if we get any success before you do.

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Druce

We have decided that we want to do the financial immigration just in case we inherit something :rolleyes:

So my question, is it possible to immigrate financially if you still have loans to pay off and want to keep your bank account active etc?

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PaulD

Filling out SARB MP336 Form.  Question 10c.  ...effected any capital transfers abroad?  Do you need to account for all money you have taken abroad during your whole lifetime? Just a thumb suck, no way I recall all amounts during my travels and studies abroad. What have others done?

 

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