Tax authority tightens net on offshore property assets

The South African Revenue Service (SARS) has a powerful new weapon to add to its compliance arsenal since SA joined 24 other jurisdictions in signing a groundbreaking international agreement that will provide unprecedented visibility into offshore real estate. The Multilateral Competent Authority Agreement on the Exchange of Readily Available Information on Immovable Property targets one of the few remaining asset classes where significant wealth could still remain outside automated cross-border reporting systems. Moneyweb describes it as the final major piece of the global transparency framework. It notes SARS is laying the groundwork to access information on taxpayers’ foreign property holdings – long the last remaining blind spot in global tax transparency. Although the framework has been signed, SA must still complete its domestic legislative process and activate bilateral relationships. Because of this, the first exchanges are only expected around 2029, creating a practical multi-year regularisation window for taxpayers to get their affairs in order. Under the existing Voluntary Disclosure Programme, taxpayers who come forward proactively can receive reduced penalties and avoid criminal prosecution.

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