Jean du Toit is an attorney and head of tax technical at Tax Consulting South Africa, and a specialist in tax law and taxation.
Du Toit is an admitted attorney of the High Court with a BCom LLB degree from the University of Pretoria, a Master of Laws – LLM, and post graduate diploma in tax law from the University of Johannesburg. He has experience in commercial law, litigation, and tax law.
In this episode of Business Talk with Michael Avery, Du Toit discusses a raft of imminent new tax laws, and the feasibility of tax hikes at a time when citizens have been pushed to the brink financially as a result of the impact of the Covid-19 pandemic, and various lockdowns.
Last week, president Cyril Ramaphosa signed the Taxation Laws Amendment Act (TLAA) into law, which will introduce key changes to retirement and emigration.
Under the current legislation, a person who emigrates from South Africa and has formalised their emigration using the ‘financial emigration’ process, can fully withdraw their retirement funds.
Under the new law, withdrawals after 1 March 2021, taxpayers will only be able to access their retirement benefits if they can prove they have been non-resident for tax purposes for an uninterrupted period of three years.
These new tax laws, combined with growing mistrust between citizens and the government has led to increasing financial immigration with people using their retirement funds to set themselves up in a new country.
Du Toit says that the government’s more aggressive stance towards tax collection, and financial immigration has caused a flurry of applications from people wanting to take their savings out of the country under the old dispensation.
The full interview is embedded below. You can find all the Business Talk with Michael Avery interviews here.