Cape Global Investments CC has had several questions related to South African resident individuals that have left South Africa years ago but have not officially emigrated and have no fixed assets left in SA but for annuities.
To get these annuities liquidated we had to assist the client that wants to or will not be returning to SA to place their emigration on record with the SA Reserve Bank. In terms of Exchange Control a individual will stay a “resident” until this status is changed with lodging an MP336(B) form (emigration application) via an SA Bank.
The process that we had to follow is firstly get the emigration approved by SARB and then to apply to the relevant Institution (Sanlam, Liberty, Old Mutual or others) for these annuities to be liquidated and paid to a emigrant “blocked account” which we had to open with a SA Bank.
We also had to re-register the client with SARS ito Income Tax, if he has not been filing returns, so that the Institutions can get a Tax Directive.
CGI has been successfully servicing these clients that have no avenue available to get this done but for those who contact their Accountants which in turn have contacted us.