South Africa issues 2019 budget including proposed CRS amendments

On 20 February 2019, the South African government issued its 2019 budget which, besides the decrease of South African economy’s growth to 1,5 % in 2019, outlines proposed amendments to international mandatory disclosure rules such as the Common Reporting Standard (Link). The budget states that it has been identified internationally that offshore structures and arrangements are being designed in an attempt to circumvent financial account reporting under the OECD’s Common Reporting Standard. The standard is used for the exchange of information between countries. It is proposed that the OECD’s model mandatory disclosure rules be implemented in South Africa to identify and counter such structures and arrangements, and that similar penalties to those currently in force for non-compliance with the reportable arrangement legislation be imposed for non-compliance with the rules.

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