Sign in to follow this  
Guest Barbara

Officially Emigrate ????

Recommended Posts

Zanie

Well thank heavens that I don't have money, b/c it sounds like alot of work! :) I think I'll start building my portfolio here in Canada...

I'm just glad to be here and I'll be even more excited in 2 years time when I have my PR Card in my hands! :ilikeit:

Share this post


Link to post
Share on other sites
gajo
Well thank heavens that I don't have money, b/c it sounds like alot of work!  :D  I think I'll start building my portfolio here in Canada...

I'm just glad to be here and I'll be even more excited in 2 years time when I  have my PR Card in my hands!  :P

<{POST_SNAPBACK}>

Good luck for 'The Wait' B)

Share this post


Link to post
Share on other sites
Harry

Gajo,

I'm pretty sure that it is good for only one tax period. The idea is to prove that you have met all your tax obligations. You get new tax obligations every tax year...so it seems to me that it could never last more than a year....but I speculate.

Maybe Stuart Lategan could comment...I seem to recall he was in SA banking. Have not seen him post in a while.

Share this post


Link to post
Share on other sites
gajo
Gajo,

I'm pretty sure that it is good for only one tax period. The idea is to prove that you have met all your tax obligations. You get new tax obligations every tax year...so it seems to me that it could never last more than a year....but I speculate.

Maybe Stuart Lategan could comment...I seem to recall he was in SA banking. Have not seen him post in a while.

<{POST_SNAPBACK}>

Hi all,

If I apply for an investment tax clearance now, and leave January 2006, will that still be within the 'tax period'??? Please advise.

Thanks in advance.

Share this post


Link to post
Share on other sites
Matisse
Hi all,

If I apply for an investment tax clearance now, and leave January 2006, will that still be within the 'tax period'??? Please advise.

Thanks in advance.

<{POST_SNAPBACK}>

Yes, your next tax assessment period will be from March 2005 to February 2006.

Share this post


Link to post
Share on other sites
gracecat

A question on freezing of assets following emigration:

As I understand it, if a person officially emigrates out of SA, bank accounts are frozen, etc. What happens to South African closed corporations in which the emigrant remains a member? And what about SA trusts in which the emigrant remains a trustee or beneficiary?

Share this post


Link to post
Share on other sites
Harry

As regards CC's, I do not know.

As regards trusts...big pain. Rather clean it up before you leave.

Share this post


Link to post
Share on other sites
johankok

Thank you for the warning on trusts...... never even thought about this.

I would guess with CC's it will also depend on the law changes to make it companies. I do not remember when these law changes will be enacted, but that should be shortly. Thus one will have to look at both the current CC's (which could affect one more personally) and what happens to a person's legal liability once the CC's is transformed into companies. Maybe someone else on this forum had a good look at that.

Share this post


Link to post
Share on other sites
boeg

I am not sure what Johankok is referring to re CCs being automatically converted to companies. Generally one applies to Registrar of CCs and Registrar of Cos to effect this.

I haven't checked my books but I don't recall there being any prohibition on having 'foreign' members of a CC (which is what you would become). The CC is seperate juristic entity so it should have its own bank account. I don't see how they can freeze this account, as its not 'yours' per se, particularly if there are other members.

If you intend to allow the CC to go dormant for a period of year or more I would suggest you get rid of your interest. Any debts against the CC can continue to run and after a such a period of dormancy the CC's creditors can apply to deregister the CC. The effect of this is that the members are directly liable for the CC's debts. If you come back to SA for any reason, you may then find that you have judgment against your name as a result.

Share this post


Link to post
Share on other sites
robert

Good legal advice boeg :blink:

Regarding trusts, it can become problematic if a trustee of a South African trust is not resident in the Republic for an extended period of time.

Share this post


Link to post
Share on other sites
johankok

boeg -- government's intention is to change all CC's to a sort of limited company. I have not gone into the details of that, and did not check as to when the law change is likely to be implemented. One of the key aspects of the change would be to "classify" a company on it's size. Should a "CC" exceed a certain turnover, then that business would be reclassified as a company (as in today's terms) with the legal requirement for audited statements. The "micro" company (ex-CC) would only require a bookkeeper as is with CC's today. That is as far as my knowledge goes. I have no idea on the effect of "member" liability, shares etc.

There is nothing prohibiting a foreigner to have a CC, but the biggest difference lies in that with a company, one is a shareholder, and with a CC you are a member. A member is deemed as part of the active (day-to-day) management of the CC. A shareholder on the other hand is seperated from the operations of the business, thus not regarded as having an active role in the management of the organisation (unless the shareholder happens to be a manager as well). Thus to me it all depends on the interpretation (of the bank or whomever) as to the "personal" aspect of a member's involvement in the CC. - especially with respect to potential liability on the mismanagement of the CC.

I would suggest rather to get some expert legal advice (not just the average lawyer) before risking that. Personally I'd feel much more comfortable to convert a CC to a company before formally emigtrating. The cost is negligible compared to the potential risks.

Share this post


Link to post
Share on other sites
CharleneK

Ummmm, Johan, Boeg IS a lawyer. Are you saying she's "just" an average one?

Charlene :cry:

Share this post


Link to post
Share on other sites
Harry

Ai tog!! :cry:

Share this post


Link to post
Share on other sites
johankok

No I was not saying that she's just an average one... The person I used for reference info is the Senior State Advocate in charge of all SARS investigations. Admittedly he not looking after reserve bank issues either. I am also doing a research thesis and the CC/company changes has an effect on it (Business Management side of it).

But let Boeg correct me should I have stated anything wrong..... I am open to correction.

Share this post


Link to post
Share on other sites
Harry

Johan,

what is your research thesis on?

Share this post


Link to post
Share on other sites
johankok

Digital Hub for Tswane Metro. -- Catalyst for business/job creation. The focus is also on a digital hub in the African context.

Share this post


Link to post
Share on other sites
Harry

Originally posted : Oct 4 2006, 01:42 PM

Johan,

Yep, I know about the Tshwane Digital Hub.

Tshwane Digital Hub.

Also see HERE ( the third last paragraph)

and HERE.

There are associated initiatives, such as THIS one.

Interessant! Watter graad wil jy vang by watter universiteit?

Share this post


Link to post
Share on other sites
Alwyn

I wonder what's in it for STORM if it is supposed to be free access?

Share this post


Link to post
Share on other sites
Bluebonnet
As regards CC's, I do not know.

As regards trusts...big pain. Rather clean it up before you leave.

Hi Harry, trusts...big pain. But it came my way after my father passed away, you cannot clean it up before you leave, also inheritances. I have been away for 15 years, it is difficult.

Good legal advice boeg :holy:

Regarding trusts, it can become problematic if a trustee of a South African trust is not resident in the Republic for an extended period of time.

What about a beneficiary of a trust? I have been out of SA for 15 years, and now want funds from the trust transferred to me, I guess big problem? :oops:

Share this post


Link to post
Share on other sites
Guest Karin Nell

As far as I understand, you are now allowed to take up to R4mil out of the country when you immigrate.

Share this post


Link to post
Share on other sites
Sandy Forsyth

Hi

I saw Harry's comments on paying out inheritances overseas and have a few questions.

What are the limits allowed for inheritances that are paid out overseas.

How how much does the government take when you apply to do this.

Who applies?

How long does the process take?

Thanks

Sandy

  • Like 1

Share this post


Link to post
Share on other sites
Berrie

I noticed that it has been a while since this topic has been discussed. When we left 10 years ago we were adviced not to officially emigrate. However, my understanding is that legislation has changed sionce then and I am reconsidering this option. Especially since it is now possible to have your full pension transferred and if there is any potential of an inheritance, that too.

Has anyone tried officially emigrating while being in Canada or can it only be done when in South Africa?

Share this post


Link to post
Share on other sites
Sheryl

Has anyone recently officially emigrated? If so, was it a big mission?

We're still toying with the idea, especially as I believe one can now get your RA's paid out if you do, which would save a lot of hassle once (assuming all goes well!) we're in Canada.

I know one basically applies through your bank, but how long does it take and is applying through your bank the only process you have to follow?

My passport has been recently renewed, so at least I wouldn't have to worry about renewing it while in Canada and hopefully by the time it expires I'll have a Canadian one! Not too sure if there's anything else that would go against officially emigrating, so would appreciate any input.

Thanks,

Sheryl

Share this post


Link to post
Share on other sites
Karen

It was a long time ago, now, but we did officially emigrate.

I remember we cleared all our debt and filled in the forms at the bank to get tax clearance. We had no assets in SA, so the whole process was very simple. Whatever we had ( and it wasn't much), simply came along with us.

In retrospect, I am very pleased we did it officially, as we never had any worries about going back and simply became Canadian citizens only when we could. We never used a lawyer and did it all on our own, but as I have said, it was quite a while back.

Share this post


Link to post
Share on other sites
Guest Barbara

We did 5 years ago and it was easy. Just needed tax clearance and the bank did the rest. No problem at all. We also want our RAs to be paid out.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this