This article will discuss some of the developments relating to the gathering and exchange of information from a South African perspective including the powers of the South African Revenue ServiceThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... (“SARS”) incorporated in the Tax AdministrationTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... Act, 2011 (“TAA”) which came into effect on 1 October 2012. It will outline the various agreements which South Africa has entered into relating the exchange of information and finally a United Kingdom (“UK”) Court of Appeal judgment delivered in 2013 dealing with Article 25A of the South Africa/UK double tax treatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... on assistance in the collection of taxes.

SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... has been entrusted with powers under Chapter 5 the TAA to gather relevant material from taxpayers for purposes of proper administration of tax lawsTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... by way of inspection, verification or audit. If at any time before or during the course of an audit it appears that a taxpayer has committed a serious tax offence, the matter may be referred for criminal investigation. SARS’ powers to gather information extend beyond the specific taxpayer who is being investigated, audited or whose affairs are being verified. SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... may require a third party to submit relevant material that SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... requires regarding a taxpayer.

In addition to the abovementioned powers, Chapter 11 of the TAA empowers SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... to collect a tax debtTax liability represents the total amount of tax owed by an individual or business to a tax authority, whether local, national, or international. This obligation arises through various forms of income, profits, or transactions subject to taxation laws and regulations. Understanding tax liability is essential for compliance and efficient financial management for corporations and individuals. It influences how businesses structure... owed by a taxpayer from a third party who holds or owes or will hold or owe any money, including pension, salary, wage or other remuneration to a taxpayer and if the third party fails to do so, such person may be held personally liable for the money. Part E of Chapter 11 of the TAA empowers SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... to –

• apply for a preservation order in relation to any assets of a taxpayer where a foreign state has requested a conservancy of an amount alleged to be due to the foreign state by the taxpayer under the tax lawsTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... of the foreign state where there is a risk of dissipation or concealment of assets; and
• collect an outstanding tax debtTax liability represents the total amount of tax owed by an individual or business to a tax authority, whether local, national, or international. This obligation arises through various forms of income, profits, or transactions subject to taxation laws and regulations. Understanding tax liability is essential for compliance and efficient financial management for corporations and individuals. It influences how businesses structure... by applying to a court for an order compelling the taxpayer to repatriate assets located outside South Africa in order to satisfy a tax debtTax liability represents the total amount of tax owed by an individual or business to a tax authority, whether local, national, or international. This obligation arises through various forms of income, profits, or transactions subject to taxation laws and regulations. Understanding tax liability is essential for compliance and efficient financial management for corporations and individuals. It influences how businesses structure....

Based on the above, SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... has extensive powers to collect information and tax debts not only owing to itself but to thetax authorities of foreign states.

It should therefore not come as a surprise that SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... has entered into various bilateral and multilateral agreements with other states for the purpose of obtaining and exchanging information and the collection of taxes owed to SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... from assets situated in other states.

SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... has entered into the following agreements with other states

• The USA FATCA Agreement whereby the two states can exchange information automatically under the provisions of the double taxation agreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... concluded between them. This agreement requires South Africa’s Foreign Financial Institutions to collect and report on certain information to SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... with effect from 1 July 2014. Institutions that must report under FATCA include South African banks and custodians, brokers, asset managers and private equity funds. Information reported to SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... will then be exchanged with the US Treasury through a process of Automatic Exchange of Information under the legal framework provided by the double taxation agreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... that exists between South Africa and the US. The US will reciprocate and provide similar information to South Africa in relation to South African taxpayers. The aim of the FATCA Agreement is to combat tax evasionTax Evasion refers to illegal activities or practices undertaken by individuals or businesses to avoid paying taxes. It involves intentionally misrepresenting or concealing income, inflating deductions, or underreporting earnings to reduce tax liability unlawfully. Unlike tax avoidance, which uses legal methods to minimize tax obligations, tax evasion is a criminal offence that carries significant penalties, including fines, imprisonment, and asset... and improve international tax complianceTax Compliance refers to the adherence of individuals and businesses to the tax laws and regulations of a specific jurisdiction. It encompasses the timely and accurate filing of tax returns, the payment of tax liabilities, and ensuring that all tax-related obligations are met as stipulated by legislation. Compliance involves more than just submitting tax forms; it includes maintaining accurate financial....
• Multilateral Mutual Administrative Assistance Conventions / Agreements. These are agreements between two or more states to enable them to exchange tax information on request automatically, as well as to provide assistance in the collection of taxes. South Africa has signed the Multilateral African Tax AdministrationTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... Forum Agreement on Mutual Assistance in Tax Matters and the Multilateral Southern African Development Community Agreement on Assistance in Tax Matters. In addition to the above, South Africa has signed and ratified the Multilateral Convention on Mutual Administrative Assistance on Tax Matters as amended by the Protocol which came into effect on 1 March 2014. Other states which have entered into the aforementioned convention includeIndia, Netherlands and the United Kingdom and many others.
• Bilateral Tax Information Exchange agreements between two states to enable them to exchange tax informationupon request. South Africa has entered into these agreements with states such as Bermuda, Guernsey and the Cayman Islands.

In the 2013 appeal case of Ben Nevis (Holdings) v Commissioners for HM Revenue & Customs [2013] EWCA civ 578, the England and Wales Court of Appeal (Civil Division) dismissed the appeal brought by the Appellant, a company incorporated in the British Virgin Islands and held that the Respondent (HM Revenue & Customs) was entitled in terms of Article 25A of the South Africa/UK double tax treatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and..., to collect tax debts owing by the company to SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently....

Based on the above domestic legislation, international agreements and case law, it is clear that tax authorities worldwide are seeking to know the tax affairs of their taxpayers not only in their local jurisdictions but in offshore jurisdictions too. Tax authorities are keen on co-operating with each other towards a common goal – ensuring that taxpayers are paying taxes where they should be paying taxes.

The gap for secrecy provisions and regimes is accordingly slowly closing in on non-compliant taxpayers as tax authorities co-operate more and more with each to protect their respective tax bases and to assist each other collect taxes owing to them.