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Mark Shuttleworth will appeal the Reserve Bank's multimillion rand levy on Thursday

by , 26 August 2014

South African billionaire, Mark Shuttleworth, will appeal against the South African Reserve Bank's decision to levy R250 million, which he paid in 2009.

The businessman, who now resides in the Isle of Man, had to pay the levy after moving R2.5 billion of his money out of South Africa.

The levy is in line with current exchange controls the central bank has in place.

Let's take a closer look at what's going on…

Mr Shuttleworth wants his levy ‘refunded’

On Thursday, Mark Shuttleworth will return to court to fight against the Reserve Bank, says IOL. The businessman wants the central bank to “repay more than R250 million it levied against him when he move some of his assets out of the country”.

This follows the “decision by Judge Francis Legodi handed down… last July,” reports Fin24. The judge “dismissed Shuttleworth’s application to set aside the imposition of the levy”.

Jeremy Gauntlett, who is representing the Reserve Bank, says such levies are to “control capital outflows and promote macro-economic growth after the global financial instability of 2008,” notes Destiny Connect. At previous hearings, Mr Shuttleworth managed to have “some parts of the Currency and Exchange Act declared unconstitutional”.

The Reserve Bank insist there’s a need for the exchange controls

Mr Gauntlett says that Mr Shuttleworth is attacking the “heart of the scheme [South Africa’s exchange controls],” adds Fin24. And if he succeeds in his bid, “there would be no inhibition on removing capital from this country at all”.

Mr Gauntlett added that “foreign exchange reserves were vulnerable,” notes Fin24. And there’s a need to protect the currency.

With the case beginning on Thursday, time will tell if Mr Shuttleworth manages to overturn the exchange controls currently in place. And get back the R250 million he paid to the Reserve Bank.

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Mark Shuttleworth will appeal the Reserve Bank's multimillion rand levy on Thursday
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