1. DISCUSSION PAPER ON TAX AVOIDANCE
JOINT SUBMISSION TO TREASURY BY
THE FINANCIAL PLANNING INSTITUTE OF SOUTHERN AFRICA (FPI)
AND
THE SOUTH AFRICAN FINANCIAL SERVICES INTERMEDIARIES ASSOCIATION (SAFSIA)
22 MARCH 2006

2. AGENDA ABOUT SAFSIA AND THE FPI
EFFECTS OF THE VARIOUS TAX ACTS ON OUR PROFESSION
PITFALLS IN CURRENT LEGISLATION
DESIRED CHANGES TO CURRENT LEGISLATION
COMMITMENT TO COMPLIANCE

3. INTRODUCTION TO THE FPI AND
SAFSIA
WHO IS THE FPI
- formed in 1981
- representative body for professional
financial planners
- individual membership
- Certified Financial Planner (CFP)
designation

4. INTRODUCTION TO THE FPI AND SAFSIA
WHO IS SAFSIA
-formed in 1949
-representative body for financial
services intermediaries
-membership made up of large and
small corporates
CODE OF CONDUCT

5. TAX AND FINANCIAL PLANNING
Taxation an integral component of
financial planning
FAIS demands a high level of compliance
from financial planners

6. LACK OF SIMPLICITY IN ACT AND
SECTION 103
FPI in support of changes to Section 103
Current proposed changes may not be a full solution
Clear and simplified guidelines needed

7. The Abnormality Test

8. An Objective Purpose Requirement

9. Application to steps in a Larger Scheme

10. Applications in the Alternative

11. Penalties

12. Implementation and Related Issues

13. CONCLUSION
The move to engendering a culture of tax compliance a positive one
Professional bodies to encourage and enforce this culture amongst members

14. THANK YOU