This statement is being issued on behalf of Sovereign Trust (Guernsey) Limited in respect of the recent Binding Class Ruling: BCR 080 (“BCR 080”) issued by the South African Revenue Service (“SARS”) on the 12th of August 2022.
It is important to note that the BCR 080 was issued by SARS in response to an application submitted for a specific “Foreign Pension Trust” – the details, features and plan rules of such Foreign Pension Trust are unknown and not defined within the BCR 080. The BCR 080 solely applies to the specific Foreign Pension Trust that was party to the application and does not apply to any other third party, nor does it form any sort of general precedent. Sovereign has taken its own independent legal and tax advice in this regard.
For the avoidance of any doubt, Sovereign Trust (Guernsey) Limited as trustee of the Conservo International Retirement Plan is not the applicant and as such the BCR 080 is not binding on us, the Conservo International Retirement Plan nor any current or future members of the Conservo International Retirement Plan.
The Conservo International Retirement Plan is a Guernsey retirement scheme that is open to non-Guernsey resident scheme members, including South African tax resident members. The specific rules for the payment of retirement benefits and access are consistent with the relevant sections of Guernsey Income Tax Law, including a minimum retirement age of 50 and a maximum retirement age of 75, ensuring that the use of the plan is for bona fide retirement purposes.
Sovereign Trust (Guernsey) Limited is regulated in respect of the formation, management and administration of pension schemes by the Guernsey Financial Services Commission and the Conservo International Retirement Plan is a regulated scheme.
Sovereign Trust (Guernsey) Limited does not provide tax advice and nothing within this statement should be interpreted as advice nor be considered as a substitute for specialist tax advice. Individuals who apply to join the Conservo International Retirement Plan are strongly encouraged to seek specialist tax advice in their specific country of tax residence to ensure that they are aware of the relevant tax position that is likely to apply subject to their specific personal circumstances.