Reserve Bank reviewing Shuttleworth judgment

OCTOBER 2, 2014

The South African Reserve Bank (SARB) has taken note of the Mark Shuttleworth judgment by the Supreme Court of Appeal and is reviewing the judgement.

“The SARB has noted the judgment by the court, in which it dismissed Mr Mark Shuttleworth’s challenge of the entire South African exchange control regulatory framework,” said Head of Group Strategy and Communications at the central bank, Hlengani Mathebula.

Shuttleworth, who emigrated to the Isle of Man in 2001, took on the central bank, the Minister of Finance and the President on an exchange control regulation. The regulation imposed a 10% exit levy on assets exported on emigration.

The court further ordered that the levy charged for the movement of Shuttleworth’s capital to the Isle of Man six years ago be set aside.

The levy was payable from February 2003 to November 2010.

As part of the liberalisation of exchange controls, the Finance Minister announced the removal of the exit levy applicable to the release of South African emigrants’ blocked assets in 2010.

Mathebula said the regulatory framework of exchange controls has been used to liberalise restrictions on currency flows but at the same time, to ensure that South Africa has a framework for the prudential regulation of cross border flows.

“The SARB is reviewing the judgment and an appeal will be considered in consultation with the National Treasury,” said Mathebula. – SAnews.gov.za

Photo caption: The South African Reserve Bank (SARB) has taken note of the Mark Shuttleworth judgment by the Supreme Court of Appeal and is reviewing the judgement. The court ruled that the central bank should pay back Shuttleworth R250 million he paid as as a 10% “exit levy” when he tried to move his money out of the country. Image: thecloudnetwork.net.