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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: Robert Dirks who wrote (1097)9/20/1998 7:46:00 AM
From: sea_urchin  Read Replies (1) of 81766
 
Robert : You might be interested to know that Internal Revenue in South Africa taxes ANY profits made by ANYONE in South Africa who has bought and sold Krugerrands. (It is illegal to own bullion) The top marginal rate is 46%. So, even though a citizen might have "protected" himself against the devaluation of the Rand by owning KRs, that so-called protection was only partial. And that's not including the +/- 10% premium on the coins --- but only when one buys them.

As far as I can work out, the principal reasons why people in SAf own KRs are all largely for some nefarious purpose
(1) Hot money ie money undeclared for tax purposes
(2) Taking currency out of the country without declaring it
(3) To avoid estate duty by converting one's assets and stashing the coins for one's heirs

Those South Africans who seek a currency hedge are FAR better served by buying gold shares --- which transactions, for locals, are not taxed if "capital gains" are made.
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