The time is right for another amnesty
Paul Gering, Partner at PKF Durban
In 2003, South Africans were given a lifeline—a chance to come clean and regularise any offshore funds they had kept under the radar.
This amnesty was more than just a bureaucratic exercise; it was a moment for individuals and businesses to align with the law, disclose their foreign assets, and contribute to a shared vision of a prosperous South Africa. But, as time has shown, not everyone took that lifeline. Despite the government’s efforts, a significant amount of money remained unreported, hidden and out of reach.
Why the 2003 amnesty was necessary?
The 2003 amnesty was introduced with three main goals in mind:
- To enable regularisation: People who had crossed the line could set things right without facing harsh penalties.
- To maximise disclosure: The government wanted full transparency regarding foreign assets, making it easier to bring those assets back home.
- To expand the tax base: By encouraging repatriation, the amnesty aimed to increase revenue, fuelling the nation’s growth.
Back then, there was a wave of optimism in South Africa. The economy was on the upswing, and there was a genuine belief that investing in our own country was the way forward. The government, recognising this momentum, established the Financial Intelligence Centre and began expanding its network of international treaties to track down undisclosed foreign funds.