The South African Revenue Service (Sars) said that taxpayers have already paid over ZAR2.7bn and it expects another ZAR580m to be paid by the end of March.
The taxman added that the ZAR3.3bn includes agreements for payment as a result of information uncovered in the Panama Papers.
Data leaked from Panamanian law firm Mossack Fonseca in April 2016 saw more than 11 million of documents containing details of the offshore dealings of the rich and famous leaked to international media organisation.
Tax authorities around the world have used the information to track down tax avoiders and evaders.
In the UK, for example, investigations into the Panama Papers are expected to generate £100m ($140m, €113m) in additional tax, HM Revenue & Customs has confirmed.
The South African taxman could potentially be in line for a further windfall, if a document leak from a second law firm, Bermuda-based Appleby, dubbed the Paradise Papers, is found to contain more information about hidden assets and income.
A flop?
More than 759 high net worth individuals (HNWIs) have made use of the standard voluntary disclosure programme (VDP) since 2012; while 195 HNWIs applied under the SVDP period, which ran from 1 October 2016 to 31 August 2017.
Local media declared the scheme was “a flop” following reports of how few people had applied for the amnesty, with the government reportedly hoping to recoup more than ZAR40bn.
The SVDP was announced in the 2016 Budget Speech to give non-compliant taxpayers the opportunity to voluntary disclose unauthorised offshore assets and income.
Taxpayers who failed to take advantage of the SVDP can still make use of the normal VDP process to regularise their tax affairs.
However, less evidence was required for the special programme, including only a brief description of the source of the asset and documentary proof of its value. The requirements under the VDP are more onerous.
Boost to South African revenue
Sandile Memela, a Sars spokesperson, said the ZAR2.7bn revenue already collected under the SVDP is a welcomed boost to South Africa’s revenue collection efforts, as it strives to achieve its upward revised target of ZAR1.217trn, which arises under very difficult economic conditions.
“This revenue will go a long way in adding much value to the state’s revenue needs. Our successes under the SVDP are also a signal to other non-compliant taxpayers to talk to Sars before we talk to them,” he said.
