Tuesday, September 12, 2017
South African Finance Minister Malusi Gigaba said the Government is focused on closing avenues for tax avoidance and evasion while boosting accountability about how revenue is spent.
In a speech delivered at the 2017 Tax Indaba conference on September 11, Gigaba said the Government is seeking to reduce opportunities for tax minimization for individuals as far as possible, for example by shutting down a scheme that involved the provision of interest-free loans to trusts to avoid donations tax and estate duty.
He went on to add that: "Action must also be taken to ensure corporates pay their fair share, which we are attempting to address through measures such as those which are currently proposed to stop the use of share buybacks and dividend stripping to avoid capital gains tax."
He noted the Government is also targeting "illicit financial flows," noting its signature of the Financial Intelligence Centre Amendment Act in June, which he said will provide an important boost to the country's ability to combat corruption, fiscal crime, and money laundering.