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SA wealth tax could raise R160bn: study

World Inequality Lab proposes range of taxes on net wealth of above R3.82m.
Image: Bloomberg

An annual wealth tax on the net worth of South Africa’s richest people could raise as much as R160 billion ($10.7 billion) and would narrow inequality in a nation where the most affluent 1% of the population own 55% of personal wealth, a study showed.

The study, carried out by groups including the World Inequality Lab of which Thomas Piketty is co-director, assessed personal wealth in South Africa and proposed a range of taxes on net wealth of above R3.82 million, or the top 1% of the population.

South Africa is one of the world’s most unequal nations, a legacy of the apartheid system of racial discrimination that disadvantaged the Black majority and ended in 1994. The concentration of wealth is more extreme than in France, the US, the UK, Russia, China or India, and has not decreased since 1993, according to the study published Wednesday.

Under the moderate tax scenario, about 350 000 individuals would be subject to the tax, with the level ranging from 3% to 7% depending on affluence. The top rate would apply to people with a net worth of above R146.89 million and would only be levied on wealth above that level. Raising R160 billion in tax would be equivalent to 3.5% of gross domestic product, the study said.

Record Contraction

“A progressive wealth tax concentrated on those most capable to pay would be a significant policy tool to finance debt reduction,” it said. It would spare the “most vulnerable households, thus placing South Africa in a better position for an economic rebound.”

South Africa’s economy is estimated by the government to have contracted by the most in nine decades because of the coronavirus pandemic.

The study was authored by Amory Gethin of the World Inequality Lab, which is linked to the Paris School of Economics, together with Aroop Chatterjee of Johannesburg’s University of The Witwatersrand’s Southern Centre for Inequality Studies and Leo Czajka of the Universite Catholique de Louvain in Belgium.

A wealth tax would face challenges, the authors said.

Some rich South Africans would leave and others would find ways to circumvent it, and the amount of personal wealth targeted by such a tax could fall 30%, Czajka said in an interview. Still, the tax revenues would be considerable, he said.

South Africa is a good candidate for a wealth tax because its income disparity means that relatively few people would be affected and the quality of data collection by the tax authority is superior to some high-income nations, Chatterjee said in the same interview.

© 2021 Bloomberg

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Scary stuff indeed. When the focus is not on tax spend yet more on tax collection, then we’re starting – or have already started – to go down a road which doesn’t seem to reward people for hard work anymore.

I’m all for fair share payment of tax, yet it goes with fair spend as well; wasteful, vanity projects, corruption etc is not fair and more collection won’t solve that problem. As well does SA want to become a nation dependent on SASSA payments? what about effective policing, healthcare and that sort of thing. The wealthy already pay for this in their private capacity, then through taxes they’ll – with some corruption/wastage – pay for others to receive them services, it’s a horror show, as currently those services are dire provided by the state, where is value for money.

This will just scare more wealth creators away me thinks, there’s no incentive to create wealth in SA with this sort of thinking

Everything they, the ANC do is counter productive

This money won’t go toward building infrastructure or upliftment

It’s to employ more comrades and for salary hikes

I would pay my taxes gladly, but my City has become a rathole of complete destruction..It’s a crying shame and won’t improve because there’s no money

Either we do it ourselves or live on a ship

A tax revolt is looming in SA

Never! South Africans are too lazy and divided to stand up

Start with the Zulu King and tax him on his “trusts” wealth! Sole beneficiary-His Royal Highness…then call Mr. Motsepe and his brother in law- that great business creator CR and tax them.

Regrettably this tax is an option to the ANC(no cost in votes which is the only criteria) and with that chihuahua of a judge/TV star/Lecturer/Public Speaker Davis supporting this..it may happen

Cry me a river

This is that old dead horse that socialists flog from time to time “we need more money, we need to get it from the wealthy”.

The actual solution to this problem should be a fixed tax rate across all incomes, no tax incentives or deductions. Declared income will go down probably, but that will more than likely be easier to enforce than the intricate system that they have now.

Ok so Mr A has worked his butt off for 40 years looking forward to settling down

He moves to a quite place in a Security Estate for obvious reasons

He has no debt and his house that he saved for is worth R4,0 mill.. He earns 40k pm pension of which he has to pay an exorbitant electricity bill, his estate levy, income tax, medical aid and rates and taxes to a council that does ZERO.. On top of that the police are useless so he also pays toward a security company. Out of pocket expenses or groceries had to be added

The State considers him a wealthy man, hence will have to pay R10 000 pm or R120 000 pa according to the scale

By the sounds of things, this “wealthy” guy will have to bond his house to pay Government a wealth tax. Eventually when he dies, his Estate will pay Estate his liabilities will outweigh his assets and the bank will repossess his house

On top of this, Government loots a GDP every half decade or so..

You retire debt free, are wealthy by Governments standard and eventually die a pauper, having given your wealth via a bond to a bunch of thieves

I honestly question the intelligence of the ANC

They keep kicking the can down the road ever moreso taking us all along to an abyss so deep, 10 Eskoms won’t even illuminate the darkness

you are being generous. You’ve only done 3% on his paid off house and not the value of his pension. He should pay 3% on the pension too.

Luckily it isn’t annual tax, it’s a once off wealth tax.

Except that last line is a lie. Once you tax, you tax every year.

Jblack no the proposal is to tax wealth at a minimum of 3% per year. This obviously means that most pensioners will run out of money as they will have to withdraw about 7% per year out of their pension funds. Withdrawing 7% a year out of a pension fund is considered unsustainable by most experts.

Precisely!

As predicted. Since Govt struggles to extract/extort more (normal) Income Tax from it’s few million (and dwindling) taxpayers….NOW it’s time to try and free you from your accumulated wealth.

But also Prescribed assets, or through whatever means necessary.

How many years will pass in SA, when the cost of living in Monaco could become more attractive or cheaper?

A famed saying by Winston Churchill: “No country has ever taxed itself into prosperity”.
Well, try lifting yourself by pulling on the handle, when you stand in a bucket.

Is SA in a race to the bottom? Wrong question: how far is SA in its race to the bottom?

It’s an ANC hallmark to scare away capital and skills. (the ANC-led state is clearly now suffering the consequence of past, damaging economic policies. Now that have to find even more to compensate…)

Instead of stealing productive taxpayers’ wealth, the state can just print kazillions of ZAR….it’s the lesser of two evils.

And to add insult to the injury these despots are going to tax us more to pay for the vaccine – instead of recouping the R500bn stolen from the PPE fiasco tenders.
And then the intrepid idjuts at SARS should add a double tax to our newly minted PPE/Gupta/State Capture tendrepneurs.
That should solve our liquidity crisis for some time to come.

All those in favour raise your hand and say – Yay!

It is the allowance of this left wing socialist rubbish articles that have harmed not only our media but media world wide.

Decades and decades of data shows which policies alleviates poverty and generates wealth for a country’s citizens but time and time again, moneyweb, daily mavrick and others give airtime to this complete false logic.

Even communist China had to resort to capitalism to lift over 500 000 000 out of poverty.

Disappointing to see this rubbish get published!

Reality of joining Argentina as a failed economy looms closer

The ANC knows he remedy…. just not the balls to do it

leah, you say i do not have principles because i do not care about what other people do?

excluding meat groceries are cheaper in Europe…..and then I also wonder how and who will calculate my net worth.

Printing money is the worst option because everything that has been saved is worthless and we have Zimbabwe 2.0.

@Honda
I hear what you say….we’ll then have to deal with hyper-inflation. I get it. But at least one can try to mitigate against depreciating ZAR, when you have some direct offshore assets (even via share-broker accounts).

At worst case, I’d rather be in a position trying to mitigate hyper-inflation (where you still have your wealth stashed away) VERSUS having all your wealth ‘confiscated’ via ulterior means…and have nothing left. (The ANC will find a way, don’t you worry.)

Which scenario do you prefer?:
All your local pension/wealth is gone & expropriated OR still have it all (offshore) and wisely deal with local hyperinflation?

(I also have a Honda, but it cannot be driven. However it laughs at load-shedding 😉

Well said Michael and many other comments but I see the situation slightly differently. The ANC regime does not care about SA’s general prosperity or real wellbeing and freedom of its citizens. Covid has shown us this more clearly than ever – the lockdown and vaccine debacles bumble on. The regime has deliberately created a South Africa where the majority of voters are dependent upon them for survival. Either with a salary (often not earned) from government, municipality, SOE or subsidised industry or as a recipient of “free stuff”; grants and RDP houses etc. Very like ZANU PF; not by coincidence either.

So they, the ANC, really do not care one jot about the SA taxpayer, they are there to be milked. These unproductive voters need to be kept sweet however, as above, and this costs = more tax.

Now also look at the ANC elites, “leaders”, apparatchiks, tenderpreneurs, fellow travelers, bagmen etc. They, and their families, live like kings at the taxpayers’ expense but are growing old. All are wealthy in terms of the tax proposed (ha ha) but very few can sustain the lifestyle they have become accustomed to in “power”. Very few are Ramaphosa wealthy.

So they need a last big score; EWC, BEE, NHI or covid. But this needs to be funded from somewhere ergo, a wealth tax; maybe, possibly something else. Of course, like VAT and the Gupta’s it won’t apply to all of the aforementioned.

But one thing is certain; tax will go up, the ANC elites will get richer, the taxpayer will be screwed, the average South African will become poorer and there will be no benefit to SA’s prosperity. Think Zim.

This would be like driving over the golden-egg laying goose with an M1 Abrams tank, twice. Fools

What can you do with R3.8 Million in total assets to live a normal life?

Why go to work every morning at all? and all the stress and long hours?

Increase the Taxes more and I stop working.

Does the Receiver of Revenue have an army of non-affirmative accountants who can determine a high net worth individual’s assets minus his liabilities? It’s not a simple exercise at all and it changes all the time.

Indeed. Govt should take that proverbial ‘goose’, give it the best treatment & living conditions, So that the goose get fat, mate, and multiply. Later you have a whole shed of goose laying golden eggs.

But no, it does not compute with our socialist ‘leadership’. They’ll eat the last goose.

Surely a halt to ANC corruption and theft will ‘raise’ much more.

Yes it would…but that is like a lion become a vegetarian ie it snot going to happen!

I for one have had enough of this, I have not worked my entire life to get to a stage where I can almost retire just to have these morons think they can just take it away. I will close my business and another twenty plus people will be unemployed. I have been optimistic about this country despite all the negativity around me but enough is enough

How are they going to calculate the value of your wealth? Does that include pension, your house etc? A lot of people close to retirement is going to work solely for the government, if they are lucky. Some will pay more taxes than what they will earn. Will the banks finance this? Some people will have to sell their houses to finance this tax.

Faf:

There are a host of questions

John owns JSE shares has no pension plan. So his R5m counts but the R5m Peter has in his pension plan valuation does not?

Opposite of above – can Paul deduct the actuarial valuation of his future retirement from his assets?

How will values be determined? At tax base cost the numbers will be much much smaller than present market value.

Mary is a beneficiary of a family trust. Do undeclared trust distributions get taxed?

Some wealth is illiquid (shares in private companies or property). How does one service the tax without liquidity?

You could go on for days.

Rather tax consumption. Slap a 25% extra duty on luxury goods. All the people with fancy structures are generally consumers of luxury goods. Ferraris are luxury goods but so is Johnny Blue…

@Faf

All you have to do is to get into contact with ex-Rhodesians, and ask them how they mitigated expropriation of wealth. Or find the Portuguese that left Moz with only their clothes on, and hear their stories

We need to learn from others, as history repeats itself.

If one study “Zimbonology”, it gives you a clear vision of SA. An accident in slow motion. So slow in fact, we don’t always realise we are part of the accident…

So very true.

Decisions have to be made and prevarication gets you nowhere

We decided in 2016 to immigrate and started our research. What we found was that Portugal made the most sense in spite of language problems. It is the cheapest country in Europe and seems to want South Africans. My research looks increasingly promising. Granted, one will have to learn a new language but once integrated in society things become easier. For example, public transport is so good that you do not need a car. Rent is about the same as in SA and food and groceries actually cheaper (and fresher). Electricity, heating and water also cheaper in the town that we have identified as a possible (already lotsa Saffers there). Schooling is much cheaper unless you want to go the private route (more expensive)

We were there on a fact finding mission in 2018, returned in 2019 to confirm our decision and now all that is left is the legal stuff … and with this idiotic wealth tax proposal it will become a certainty. By the way, we have no Portuguese ancestry, we simply love the country.

That will increase our 45% PITax further to top 0.5 worldwide. We are now on par with Germany, France, UK (USA 37%). They get back the best healthcare, top education (free schools), municipal services, infrastructure and lots more compared to our filthy city’s, world’s worst education, rock bottom transport, etc and not even vaccination. We are getting closer to garbage rating………….. Thanks to guess who.

The law of large numbers still applies.

Take 160 billion from the ‘wealthy’ and distribute it equally over the 50m population.

Lekker – they all get R3200 or one month minimum wage. Makes no difference.

Governments deal in numbers that make the seemingly wealthy group’s wealth largely irrelevant.

My dear comrade Johan, you have got this wrong. The money is not for the people, that is only the propaganda that we sell. The money will be for the party members as always, so make sure your membership is paid up and come join the last ride on the gravy train.

Thank you very much for the heads up.

I guess I might add a few more Bitcoin Paper wallets then. Better than having it stolen by a bunch of crooks.

Maybe whoever wrote this article must do a bit of homework to. I worked offshore for 25 years as I was discriminated against by the current government because of the colour of my skin. I could not find a job here. I am not alone in it and now this lot think they will steal what I have????

So go and get knotted if you think what I own has something to do with apartheid.

This government and the people that voted for them deserves NOTHING from me. NOTHING. They can not expect equality. They are thieves.

So Bitcoin it will be.

Everything literally is stashed away in btc & eth.

In SA especially, where the taxpayer gets little back in reciprocating benefits, but only to benefit a welfare state, everyone would agree that the taxpayer gets little back in “compensation” for our collected taxes.

Hence, taxation (in the SA context) is ALREADY a system of “Expropriation Without Compensation”!

If say you live in a 1st world country (be it the UK, Oz, NZ, Singapore, Canada, Europe, Scandinavia, etc) each citizen gets quite a lot back in Govt services. They would thus receive ‘compensation’ as it were.

In SA, very little or no compensation to speak of. Conclusion: taxation = EWC.

Am I wrong?

A 10-minute conversation with individuals from different wealth groups will explain the inequality in society. Material inequality is only the manifestation of the inequality of mindset and attitude. Inequality is highest in those countries where the difference in mindset and cognitive ability is the greatest. Correct the data for these factors and South Africa will be the most equal society on earth. More equal than Switzerland or Sweden even.

“From the fact that people are very different it follows that, if we treat them equally, the result must be inequality in their actual position, and that the only way to place them in an equal position would be to treat them differently. Equality before the law and material equality are therefore not only different but are in conflict with each other, and we can achieve either one or the other, but not both at the same time.” – Friedrich August von Hayek

“The metamorphosis of taxes into weapons of destruction is the mark of present-day public finance.” – Von Mises

. “[T]he system of discriminatory taxation universally accepted under the misleading name of progressive taxation of income and inheritance is not a mode of taxation. It is rather a mode of disguised expropriation of the successful capitalists and entrepreneurs.” – Ludwig Von Mises

BUT, it will all be wasted anyway!?!
Doesnt matter how much tax you raise, its the corruption and waste that is the problem!

What happened to the R500billion Covid cash relief?

There are so many things wrong here…where to begin.

1.According to this info:

https://businesstech.co.za/news/finance/363120/these-3-graphs-show-whos-paying-south-africas-income-tax/

to get to the 350k tax payers the article refers to – that would be everyone with a taxable income greater than R 750k. So not just the very wealthy. South Africa does not have that many wealthy people, and the numbers are dwindling every year as more wealthy people emigrate.

2. Heard of the Laffer curve? There comes a point where raising tax rates becomes counter productive. Try and squeeze R160bn from 350k people and see what those people do… Emigrations will increase even further.

3. Don’t get me started on government inefficiencies. Pouring more water into a leaking bucket is not the answer. When does it become a crime in itself to willingly contribute to a government that is stealing?

Very good points! It will become unproductive, due to Laffer Curve, to get more tax out of citizens’ CURRENT EARNINGS.

OR…Govt will try to accept potted up wealth (be it your current investments, phys assets, or retirement savings). Saffas’ potted up wealth IS THERE….for an easy picking.

Much easier for Govt to ask for a “loan” of say 5% once off (…the 1st one 😉 everyone’s retirement pot….as most of us still working, won’t feel it immediately in any case….but a rise in Income Tax WILL BE FELT immediately.

I know which Govt will (try) to go…

Hence I say…leave our potted up wealth/savings/pension alone, and instead govt can print themselves out of trouble (won’t be good either, but hyperinflation can at least be mitigated to a point…while still having your wealth offshore). It buys you and me time to externalise more funds.

My dog in Azerbaijan will soon have a lot more Bitcoin to look after. He promised to send me “family support funds” as and when required.

Great dog.

A wealth tax is implementable ! Even Dennis Davis admits this.The ANC as usual expect the wealth creators to forever subsidise those incapable of earning : Never going to work.

Cuba also has sky high levels of inequality.

The ANC is worse than the country.

Correct. EVERY country has high inequality…even the wealthy US….from Elon Musk to trailer trash folks.

From the wealthy posh areas of Sao Paulo (insert any city name on the planet) to the shanty towns scattered amongst the hillsides.

MW> pls org a national zoom imbizo/referendum on this topic. Bring MW readers and politicians. We’ll sommer vote right there and accept the vote. Then end this talk. Lol.

Morons.According to the World Bank, Equatorial Guinea has the highest GNI (Gross National Income) per capita of any African country, 83 times larger than the GNI per capita of Burundi, the poorest country. That is due to its oil reserves. Yet despite its impressive GNI figure, Equatorial Guinea is plagued by extreme poverty because its Gini coefficient of 65.0 is the highest in the entire world. Therefore despite its massive oil wealth it made little difference in the lives of its 1,4 people. Only a select few benefits including the same president for the last 40 years.

3% of wealth probably exceeds the after tax after inflation yield for most. So in effect the wealth tax amounts to a 100% rate of taxation on income.

Makes sense : after 10y the list will need to become the top 5% and the bar will be 1 bar

maybe try and drop unemployment to 10%, much better idea.

And the percentage of that due by corrupt ANC cadres is significant.

Since Cyril would have to pay at least 600k wealth tax a year just on his R20m buffalo this will not happen!

SA is the last nation on earth that should try this. We have a miniscule tax base. Even if a small percentage of the tax base emigrates as a result of wealth taxes, then the future of the country is dire. The country is running out of tax payers as is. This will only accelerate the exodus.

egghead, the problem is perspective:

they see this tax as an easy solution to balance the books
they really believe this tax will only influence a couple of people, in this case 350 000
to them it is a no-brainer, because they think they can save a bankrupt country

we know that these 350 000 people are the last to leave
when they are gone, they will not come back, and nobody will take their place

but you said it in one sentence:

the exodus is well on its way

Exactly. And the top wealthy part of SA citizens, are the more globally mobile ones.

In the, only the poor (and the less poor) will remain in SA…

That is how SA reverts back to “mean average” of Africa.

I marvel already what wonderful additional service the ” Rich ” will be getting in exchange for the additional tax. I think they will be overwhelmed by it and the eternal gratitude of the cadres that can steal again at levels they got used to and are deserving.

These types of articles always get published just before the budget speech. It is like clockwork: year in, year out. I can’t help but feeling that the government sneaks these articles in, in an attempt to try and soften tax payers up for what is coming. They scare taxpayers with extreme forms of taxation, and in the budget speech, announce seemingly less punitive tax increases. Tax payers then express a sign of relief, and although the announced tax increase are unfair and punitive, they seem less bad than the alternative presented scenario. I wouldn’t be surprize if Judge Dennis and Pickety weren’t put on a retainer by the SA government for the purposes of this surreptitious PR exercise. The only thing that they do not realize – this type of scaremongering is literally driving people to emigrate, and is actually have a negative impact on the fiscus.

Interesting point!

Articles are thus spread far and wide that Govt may up the CGT ‘inclusion rate’ from the current 40% to say 90%.

When Tito announces it to go from 40% to 60% (which is a hellish steep 50% jump from 40%), we all will give sigh of relief, and say: what a bargain! 😉 We love you Tito *lol*

The SA government is achieving precisely that “Literally driving so called high income earners to emigrate” My family and I hope to leave before December 2022 and not just because of the wealth tax and no, we are not that high income earners because of our chosen professions but our skills are wanted in Europe.

In fact in limited social circle is shrinking all the time with all the professionals who are leaving the country even now in this period of Covid-19.

Wonder if government monitors financial sites like this for input on the feelings of the populous? Perhaps they should.

With the high effective tax rates on high income, plus VAT and other taxes, the state is already effectively taking 50% in the high income bracket. And they still want more.

Can the good clever guys (Mike Schussler or Dawie Roodt or anyone else) put a picture together that shows the SA Income Gini next to the SA TAX Gini and compare that to other countries. It will show that while income inequality is looking bad, the unequality in tax collection is far worse.

The rich. Any member not belonging to Global membership with planes and ships to his use and disposal, should be taxed the way his democratic tribe see as the best for milking him. Stupidity can not be blamed on democratic governments, they depend on it.

Although it may seem counter-intuitive for the ANC, now more than ever does the term ‘less is more’ apply.

Incentivize with less tax to grow the economy and sunset BEE.

The World Inequality Lab refers to SA as amongst the most unequal in the world.

There is no inequality – not if you compare apples with apples. The black majority is not worse off than their peer group in surrounding countries, on most metrics like income, housing, literacy, education, medical and legal care, amount of businesses started and businesses listed. In fact they are better off, that is why hundreds of thousands streamed into this country during apartheid and millions there after.

They are at a similar level of development.

Talk about inequality – 58% of the tax income goes to 2.5% of the population, the ANC aligned government employees.

Piketty got it wrong – the inequality is not between rich (middle class tax payers) and the poor, it is between government employees and the rest.

How can Piketty talk about equality when there is such a large inequality in mindset?

Take two key issues:

The rich vote for good government in SA – the poor vote for large scale corruption and mismanagement.

The rich does not have more children than they can afford – millions of the poor have children they cannot afford.

A wealth tax only works in developed countries, as the wealthy individuals actually enjoy the world class infrastructure, low crime rates, high end social activities, etc. In SA the persons would simply emigrate and then pay the wealth tax in a developed nation where they actually get something back in return.

The ANC always talks about attracting FDI (which they also have fracked up quite nicely) but yet they cannot even keep the current local investors.

Even I, a not so wealthy person, have moved more than 50% of my portfolio directly offshore. If a majority investors have done this just imagine the amount of funding that can be pushed back into the economy if the government just implemented a capitalistic / investor friendly economic policy.

If the Government said they were going to start taxing the taxi-industry would that industry go on the rampage? More than likely. The taxi industry is united and stands up with force to anything that will impact their cosy existence. We need to learn from what is working in our country i.e what is stopping the rest of us from employing the same tactics?

Even a 100% super delux Tax will not help!

has anyone looked at the amount of money printed in the Republic in 2020?

22% of ALL rands EVER printed in the history of the republic were printed in 2020…. go look… savers being hit hard.

…apparently that was the Fed in the US according to some(?)

It doesn’t matter how much tax is milked from the so-called wealthy if, when it gets to the Treasury, it is stolen, misspent or used in rescuing failed SOE’s like SAA.

Imagine an additional R160bn in the hands of the ANC, does one really think these funds would be redistributed to those who need it? In reality it would squander and stolen by the top 1% who run our country and those who live in shakes would still be in the same position. It’s easy for some international 1st world firm to write a Goldilocks scenario but they haven’t applied real life implications – corruption. Truth is all this wealth tax would do is put more money in the pockets of greedy politicians until the top 1% emigrate and then SA would be worse off, it’s unrealistic to think this will work.

Well said!

I believe Govt should do with HALF the current, depressed income they receive. It will teach them to budget & spend less. No sympathies.

When corruption, wastage etc is stripped out….Govt actually receive MORE THAN enough.

Smart Capital ALWAYS moves when it is unfairly taxed, particularly under a Corrupt Government.

Current Tax paid by Wealthy: +R50bn;
Wealth Tax intro Year 1: +R160bn;
Wealth Tax intro Year 2: -R50bn;
Wealth Tax intro Year 3: -R100bn etc…

Doubt the Fools even understand The Laffer Curve!

Terrible idea, giving the ANC more money to loot. Stop the corruption and recover the stolen money then no wealth tax would be needed. My understanding is that the “wealth tax” would only apply to any wealth over R3.8 million. Example if you have R5 million you would pay 3% on R1,200,000, which would be R36,000. Am I correct in this thinking? As I said earlier a wealth tax would be a terrible idea and will lead to increased corruption and looting.

Know this for certain if there’s a wt then no more donation to any NGO, individual and/or any course whatsoever!

If they tax me for having more than R3.82 Million I sincerely will feel robbed. To have that money I lived like a pauper. I still live in the same old house I bought more than 40 years ago. I have 2 vehicles one old bakkie and a car that has been paid of many years ago. I should have lived like a king with debt living in Sandton wit a BMW and the latest SUV. I should have splashed out my money going regularly on overseas trips and showed them dirty signs when they want to wealth tax me. No, I did not do that. I saved up my money to have a nest egg for my old age. Now they plan to rob me to try and save a lost S.A. Shame on them.

WOW. R3.82 million is peanuts.

If you own an unencumbered property in a reasonable suburb you are two thirds there.

If you don’t have a pension because you invested in equities, you’re stuffed.

And if you have always been totally honest on your tax assessments you are really stuffed. So how do we cope?
1. Leave the country? Why not.
2. Take all your investments and buy annuities? Why not.
3. Immediately donate half your funds to your spouse? Hmmmmmmm…
4. Invest in endowment annuities? Why not.
5. Flippen spend like there is no tomorrow because tomorrow never comes?

What idiocy. If anything, this plus the fact that I still have dependent children has made my mind up to leave for good. I would rather be poor in a better country than penniless in SA.

Portugal here I come

foreign investors will likely now give this country a wide berth, if they go ahead with it. Reducing high taxes will encourage capital to stay here – and come here.They’re driving away money,skills,talent and FDI.What’s the rationale in doing that?

End of comments.

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