Multinational corporations continue to use inconsistencies in global tax rules to their advantage and to avoid tax liabilities. South Africa intends to sign a multilateral instrument this year which will assist in the updating of treaties and will reduce the scope for aggressive tax avoidance activities.

Applications to the Special Voluntary Disclosure Programme have begun. SARS has already received disclosures of R3.8 billion in foreign assets, which will yield revenue of about R600 million. The programme will be open until the end of August this year.

The automatic exchange of information between tax authorities will come into operation in September this year. Multinational companies will be required to file further information with SARS on cross-border activities from the end of the year. We will continue to work actively with the international tax community and within government to modernise customs administration and combat cross-border revenue leakages, money laundering and harmful tax practices.