On the list of things you don’t want to be linked with right now the Panama Papers are right up there, a massive leak showing that greedy tax dodgers the world over have been squirrelling money away in the tax haven.

The latest local company in the firing line is Phatshoane Henney Attorneys, a Bloemfontein based law firm who have acted as an intermediary for 436 entities.

That in itself isn’t illegal, something they were quick to point out to News24:

The firm told News24 in an e-mailed statement that all of their clients’ investments in foreign companies “are in accordance with the applicable exchange control regulations which also require tax clearance certificates”.

“Taxes are therefore paid, both in SA and abroad, as and when applicable in terms of the relevant tax legislation,” said CEO, Jan Berry.

“We have always and are still advising clients investing significant amounts abroad, not to do so in their personal names in order to avoid various onerous administrative and cost consequences, especially in the event of death,” he said.

Of course any association with disgraced firm Mossack Fonseca is always going to raise eyebrows, but Berry says the firm’s use of the firm was both legal and prudent:

He said the shareholdings of the firm’s clients in companies “formed on our instructions” were recorded in the shareholders’ registers, were transparent and should correspond with the clients’ records with SA Revenue Service (SARS)…

Berry said South African exchange control regulations allowed local residents to invest, or to do so through a non-resident company, but did not allow South African trusts to invest abroad.

“Since exchange control regulations further prohibit the pooling of foreign investments, a non-resident company within which each family member can hold his/her own shares is in our view the best suitable vehicle to serve as the family’s multi generation estate planning platform,” Berry said.

“The choice of jurisdiction is essentially based on the existence of a strong legal system under English law and cost effectiveness.”

Looks like they’ll be getting off a lot lighter than Iceland’s Prime Minister then (HERE).

[source:news24]

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