This article aims to clarify “formal emigration” which, in my view, includes both Tax and Financial emigration. There are many interpretations out there, mostly theoretical, with little understanding of the processes involved, nor the flow of information between various stakeholders actioning the emigration request.
Unfortunately, when it comes to formal emigration – ‘One shoe does not fit all’. The process of financial emigration is difficult to understand, without an appreciation of documentation, the context, the stakeholders and a system designed for emigration scenario “N”. “N” being an expected normal emigration – if ever one could assume there is such a thing.
The process of emigration (governed by the six-page MP336(b) form) is ideally designed for:
• A tax complaint South African emigrating currently,
• With one bank left in South Africa,
• Some wealth in South Africa,
• No assets outside of South Africa,
• An ability to reside permanently at a place abroad (without being considered a visitor on holiday),
• Intent to make that spot abroad their home or place that they return after travels, and
• No further interests in South Africa or need to have a bank account.
Meet all of the above and your emigration is a fairly simple process. Well, not quite.
I will not do the many variations to emigration credit, but the shortcomings of one form being used by all is that it can never create an expectation of documentation required for all. Each emigration becomes unique to circumstances… There is no expected “N” emigration scenario.
Add to the ‘simple’ process example above - the different requirements of different banks for the same emigration. Then consider the human factor when staff requirements are also sometimes subjective. Magnify this picture, adding rules for banks, SARS, Mutuals, the Reserve Bank and various non-compliances with agencies linked to SARS.
Fortunately, it is not as bad as it sounds and all stakeholders are making effort to action their roles with professionalism and speed.
Of importance is that the same form is used by banks, SARS and the Reserve Bank, and an original with stamps needs to move through the offices of these unrelated parties who follow different rules for their part in this emigration process.
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