Magda Wierzycka, one of South Africa’s wealthiest individuals, is currently in a legal dispute over her UK non-domiciled (non-dom) status, according to City AM.
Story Summary:
- Magda Wierzycka has no plans to return to South Africa due to personal safety concerns linked to her anti-corruption efforts.
- The UK’s crackdown on non-dom tax status could significantly affect South African expats like Wierzycka.
- Wierzycka’s case casts a spotlight on the need for South Africa to reevaluate policies to retain and attract local talent amid ongoing governance and safety challenges.
Magda Wierzycka on why returning to South Africa is out of the question
Wierzycka, the co-founder of Sygnia Asset Management, left South Africa citing safety concerns tied to her vocal anti-corruption efforts.
She had been an outspoken critic of former President Jacob Zuma and the controversial Gupta family, whose alleged influence on South African governance sparked nationwide protests and investigations.
Her departure followed threats to her personal safety, leading her to settle in the UK.
Wierzycka has expressed that South Africa’s crime levels and governance failures make it impossible for her to return.
She has previously highlighted the risks faced by whistleblowers and those challenging entrenched corruption in the country.
The impact of the UK’s non-dom policy on SA expats
Wierzycka’s fight to maintain her non-dom status is part of a larger crackdown by the UK government on the policy, which has historically allowed wealthy residents to avoid paying taxes on global income.
The UK government has intensified scrutiny of this system, requiring long-term residents to either pay full taxes on international earnings or relinquish the status altogether.
For South African expatriates, the changes to the non-dom policy carry significant implications. Many South Africans residing in the UK have relied on the tax benefits of non-dom status to protect their international investments.
With tighter regulations, these individuals may face higher tax burdens or be forced to relocate to other jurisdictions.
