Kindly take note that by Government Notice 1035, published in the Government Gazette No. 29299 on 13 October 2006, the Minister of Finance has issued an exemption from the reporting obligations under section 29 of the Financial Intelligence Centre Act No 38 of 2001 (the "FIC Act"), in respect of the Small Business Tax Amnesty and Amendment of Taxation Laws Act, 2006 (Act No 9 of 2006) (the "Small Business Tax Amnesty Act").
The South African Revenue Services (SARS) issued a tax amnesty to small businesses that are non-compliant with tax legislation. The amnesty covers businesses with a turnover not exceeding R10m and covers the full spectrum of small businesses, i.e. sole proprietors, partnerships and certain unlisted companies and trusts.
The amnesty applies from 1 August 2006 to 31 May 2007.
In terms of the FIC Act, a person who carries on a business, is in charge of or manages a business, or is employed by a business, has a duty to report a suspicious transaction to the Financial Intelligence Centre, where that business is a party to a transaction that may involve an investigation of tax evasion or any other duty or levy imposed by SARS.
The exemption applies to persons, such as tax advisers, accountants and tax practitioners, when they assist or advise a client who apply for amnesty in terms of the Small Business Tax Amnesty Act. This person will not be required to report a suspicious transaction in respect of the information disclosed to him or her by the client. The exemption applies irrespective of whether the client actually applies for amnesty or not.
The exemption does not absolve any person from liability for their own involvement in unlawful activities.
The full text of the exemption is available on the Centre's website at www.fic.gov.za.