Is this a scam or not?

[marco]

To get back to the subject. I hope this was a scam as it will benefit me big time.

Portugal IRS is hounding me for proof that the "Exit Tax" is payable and that I have been paying it. Taking in mind that I was invested 100% in CML for over 4 years and made a 6 figure capital gain before selling it a year after emigrating.

Portugal is entitled to the CGT as the tax treaty states that it is only payable to the country of residence. Unfortunately the CGT here is a flat rate of 28%. That equates to a few hundred thousand rands. That is the tax bill that I received.

SA Exit Tax would be an effective 13%. That is a huge difference.

I now have an email from my SA accountant stating the amount payable to SARS and the new Base Cost to use in Portugal going forward. Plus she sent me a very official looking SARS document showing the amount and calculations.

Now I can present this proof to the IRS here and they will have to accept it.

 

[marco]

A FICA is merely proof of where you live and that you are still alive. We have to do it every 3 years and it does nothing to your tax status at all.

Should you be non compliant then SARS can have access to any funds you have in SA and deduct the amount owing without your permission.
Tax treaties also allows participating countries to effect tax on expats and repatriate the money so you cannot hide money and not even in tax havens anymore.