SARS taking a closer look at offshore arms
Given the SA Revenue Serv ice’s (Sars’) intensified approach with regard to taxpayers who are structuring their businesses offshore, it would be prudent for these taxpayers to seek proper advice to ensure their offshore structuring does not affect t he m negatively should they be audited or investigated by the receiver.
As and when SA taxpay - ers consider planning offshore structuring, they must primarily give consideration to the provisions set out in the double tax agreement (DTA) between the resident country, namely SA, and the country in which they intend doing their offshore structuring. Insofar as there is a limitation or nullity in terms of the provisions set out in the applicable DTA, subsequent reference and application must then be given to the domestic law of each contracting state.