Money in cayman islands

[rorz0r]

Let's say hypothetically I had R1mil in an account somewhere in the cayman islands.

Would it be possible to get it into SA and how much would one be taxed?

 

[Freshy-ZN]

You sound like a 419 scam waiting to happen

P.S. Need a new best buddy?

 

[ant101]

Plain ticket and a fat money belt will do the trick!

But on a serious note, you need to phone SARS and tell them about it. They'll give you clearance and tax you , something like 30% no doubt , but I'm not sure. Then you're bank should be able to handle the transaction once you fill out the incoming funds application forms.

I still like the money belt idea

 

[FrancTheTank]

Buy gold with it there;
bring the gold back (fly with the several ounces)
sell the gold here, yay.

(I love thinking about money )

 

[MadMailMan]

What passport do you hold? As a foreigner it's a lot easier to get money into SA.

 

[rorz0r]

Sure Freshy-ZN, just send me your bank details and a copy of your ID please

30% is steep. Would be cheaper to buy something from china and sell it here or something... (sounds a bit like money laundering but don't think it is).

MadMailMan, I'm an SA citizen, need to go pick up my passport sometime It's only hypothetical, I wish I had a million anywhere... (except zim)

 

[guest2013-1]

you need to transfer the money in small amounts back to SA using wire transfer and claim it as alamony (sp)

 

[Milano]

It's only hypothetical, I wish I had a million anywhere

Too late, this thread has already been flagged by the following agencies:

South African Revenue Service [SARS]
South African Secret Service [SASS]
National Defence Force Intelligence Division
National Intelligence Agency [NIA]
South African Police Service [SAPS]

 

[rorz0r]

Well if they find anything for me then they can gladly have the 30%

 

[DJ...]

(sounds a bit like money laundering but don't think it is).

It's tax evasion and carries just as severe penalties. Purchasing goods and selling them in the country means you'd have to get passed customs which would involve some sort of fraud and possibly bribery as well. More ink for the charge sheet.

Considered some old school bearer bonds, ala Hollywood style? You're in bond capital of the world in the Caymans. Tax haven, hence why you'll find plenty of offices occupied by nobody but a receptionist and a sign above the door. They are special purpose vehicles setup for tax avoidance (which isn't illegal) - mostly owned by the banks who originate large corporate loans. They syphon cash through these vehicles which are not subject to the loan originator's local taxation laws. You could do something similar in a private capacity...

 

[Frankie]

There's no tax on money that you bring in from abroad (depending on what it is - investment, wages, interest earned), but you get taxed on money earned abroad in investments, but if it's salary and you have been out of the country for the specified amount of time in the year then you don't pay any tax on the salary either.

I use http://www.easyexchange.co.uk/ to send money to SA and this way there's no SA bank charge (like they apply to incoming international wire transfers) and the money is transferred in Rand avoiding the SA banks cr@p exchange rate and commission.

I make sure that I stay out the country for the specified number of days per year to avoid paying income tax in SA.

http://www.offshore.hsbc.com/1/2/in...elp-you/tax-planning/tax-leaving-south-africa

Q. Will I have to pay South African tax in respect of the employment income I will earn overseas?

A. The employment income of a South African resident (other than public officials and employees of other government authorities serving abroad) who is outside of South Africa for an aggregate period of 183 full days or more during any 12-month period, and for a continuous period exceeding 60 full days during that period, is not taxable in South Africa.

For investments you only pay tax on the interest earned, not on the amount you bring into the country.

The important consequence of this change is that any person now living in South Africa will have to pay tax in South Africa on any interest that they earn on their offshore investments. This tax liability will, however, be reduced by the amount of any tax paid in countries that are party to double taxation agreements with South Africa.

 

[blunomore]

you need to transfer the money in small amounts back to SA using wire transfer and claim it as alamony (sp)

One cannot claim something as alimony payments without producing proof, e.g. a decree of divorce and a settlement agreement which was made an order of court.

 

[Frankie]

One cannot claim something as alimony payments without producing proof, e.g. a decree of divorce and a settlement agreement which was made an order of court.

Just a little off topic - is PAYE due on alimony (regardless of coming from abroad or local) ?

 

[blunomore]

Just a little off topic - is PAYE due on alimony (regardless of coming from abroad or local) ?

As far as I know, alimony/maintenance does not attract income tax. It is taxed in the hands of the payer, so the recipient is not liable for tax on it.

I stand corrected, though. My tax knowledge is limited.

 

[rorz0r]

It's tax evasion and carries just as severe penalties. Purchasing goods and selling them in the country means you'd have to get passed customs which would involve some sort of fraud and possibly bribery as well. More ink for the charge sheet.

DJK I didn't mean "sneaking" it past customs. I meant declaring it properly etc and paying the lower rate (on computer goods VAT on 110% of the value so about 16%)

 

[guest2013-1]

One cannot claim something as alimony payments without producing proof, e.g. a decree of divorce and a settlement agreement which was made an order of court.

Yes you can, depends on which country you're transferring from I guess. I know in the UAE they didn't ask for any proof

 

[Mila]

I'll spend it for you then you do not have to worry abaout SARS..

 

[Old_Username]

I think if you slowly move it in far smaller amounts you may be able to prove it is a 'gift'. Thats how my gran got around being heavily taxed. She claimed my dad gave it to her as a gift and she wasn't taxed