I am a South African national. I have an...

Asked by Mayet on 15-11-2021 12:58:58
Question posted in the General Law category relating to Gauteng

I am a South African national. I have an investment with a broker/dealer in the United States. Am I protected from death duties and creditors in South Africa

Further information relating to Question:

I am in the process of moving to Dubai permanently.

Message from the Lawyer

Posted by Att. Patrick on 15-11-2021 14:19:46

Hi there, 

I am a practicing attorney based in South Africa and I will assist you with your question. Please feel free to ask as many follow up questions in order to clarify your question. If you have a new question, you must please open a new thread.

This is a request for information so that I can understand your question and give you a proper answer.

When you made the investment in the US, how did you get the money out of South Africa? Did you declare taking the money out with the Reserve Bank?

Also, what outcome would you like from this whole thing?

Awaiting your further information.

Att. Patrick

Message from the client

The investment was funded from abroad. I was not a tax resident at the time. Can SARS or possible SA creditors in the future make a claim against the US investment through a broker/dealer? I have never reported the investment and the amount. What do I need to do to ensure compliance or do nothing? I am also thinking of leaving SA permanently next year.

Message from the client

The beneficiary resides overseas and is not a South African national.

Message from the Lawyer

Posted by Att. Patrick on 16-11-2021 16:02:19

If you are not resident in South Africa for income tax purposes, then SARS can't tax you on any profits that you make from the investment. If you are in the process of financially emigrating to Dubai, and if you funded the investment using off-shore funds, then I don't think that you are actually required to report it to SARS at all. Especially since you were not tax resident in SA at the time. 

In order for a SA creditor to make a claim against that investment, a creditor would first need to get a judgment against you. Then, they would need to have the judgment certified in a US court. Then, they would need to "find" the investment and attach it. So it is a very long road, and nobody in their right mind would do that unless they knew that the investment was sitting there. 

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