BEST advice for 2024: Government-proof yourself in South Africa

The key to surviving 2024 is to government-proof yourself in South Africa, says David Ansara, CEO of Free Market Foundation (FMF). The FMF advocates for individual liberty and free enterprise in South Africa. And its Khaya Lam land-reform initiative recently saw the transfer of 10 000 title deeds to previously disadvantaged tenants, in 2023.

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One of the ways Ansara believes you can government-proof yourself in South Africa is by paying as little tax as possible. In a report by Daily Investor, Ansara advised both individuals and businesses to strive for self-sufficiency to ensure they retain sovereignty from the state.

GOVERNMENT-PROOF YOURSELF IN SOUTH AFRICA

The FMF CEO argues the best answer against a failing state is distancing yourself as best you can from the government. You should look with clear vision and recognise the state for what it is and not what it claims to be.

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Here are five practical ways you can government-proof yourself in South Africa.

• Seek legal and tax advice to lower your exposure within the allowable framework.
• Big businesses should divorce themselves from government. Don’t let politics co-opt a good brand name.
• Support civil society that creates alternatives to statism in South Africa. These include: FMF, IRR, Solidarity, AfriForum, OUTA and Gift of the Givers, to name a few.
• Get involved. Don’t just whine about the problems, find a solution like the private companies that are keeping the lights on in Gauteng.
• Adjust your mindset to government-proof yourself in South Africa. Things can get better quickly when we don’t think of the government as being responsible for us.

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TAX EQUALS PROFITEERING

The basic idea of paying taxes is that individuals give the state money and get services in return. However, the ruling ANC government is currently very far away from managing those resources judiciously, Ansara says.

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Depriving the government of tax resources drains power from the state. However, Ansara stresses people should not break the law in the name of tax evasion but rather focus on tax avoidance. One of the easiest ways for companies to do this is by establishing an offshore company in a tax haven.

GO OFFSHORE

“An easy way to limit your tax exposure is to incorporate a holding company in a jurisdiction like Mauritius, which has a double taxation agreement with South Africa. Mauritius has a 15% corporate tax rate and no dividend withholding tax. Through clever structuring, you can lower your taxes,” concludes Ansara.

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