Leaving South Africa without formally emigrating can lead to tax issues with SARS, even after 10 years.

Question: We left South Africa 10 years ago and eventually ended up in Canada, where we now live. We never officially emigrated. Will this cause problems in years to come?

Answer: Many people leave SA to work abroad. What was originally an adventure to get some offshore experience often becomes a permanent arrangement. As they did not intend formally emigrating when they initially left the country, they are still registered with the South African Revenue Service (SARS).

If you didn't inform the authorities of your intention to live elsewhere, SARS will still regard you as a South African taxpayer, even though you have been in Canada for 10 years.

If you are a South African taxpayer, you will be taxed on your worldwide income, regardless of where you live. This is important to bear in mind, especially if there is no double taxation agreement in place between South Africa and the country you are currently residing in.

In the past there was a formal process called financial emigration. This was replaced a couple of years ago with a new concept of being "ordinarily resident". SARS takes various factors into account when it comes to determining if you are ordinarily resident...