Tax havens around the world are about to be put out of business as far as South African residents are concerned with a series of agreements put before Parliament's standing committee on finance on Wednesday.

The names of such renowned offshore financial centres as Guernsey, Jersey, San Marino, the Cayman Islands, the Bahamas and Bermuda are to disappear from significance to those wanting to keep their earnings ? legitimate or otherwise ? hidden from the tax collectors of the SA Revenue Service.

MPs heard that tax information exchange agreements (TIEAs) are to be signed with all five, and that once signed the main benefit to those who keep their money there ? secrecy ? will be gone.

"It will be a great step forward," Ron van der Merwe from SARS told the committee.

Tax haven's laws no longer valid

He explained that the move comes about as a result of global pressure brought via the OECD (Organisation for Economic Cooperation and Development) on the tax havens to come in to line, pressure which suddenly came to fruition in 2009, at the height of the worldwide financial meltdown.

The agreements presented to the committee on Wednesday closely follow an OECD model agreement and ensure that banks' secrecy or the absence of a certain tax from the tax haven's laws can no longer be used to deny a request for exchange of information.

The agreements extends exchanges to taxes of every kind and description: "Not only income but also consumption taxes such as VAT," Van der Merwe said.

The information shall be exchanged whether or not the requested party has a domestic tax interest in it or even whether conduct being investigated would or would not be a crime under its laws.

The laws of the former tax havens should allow for the exchange of information held by banks, other financial institutions and any person including nominees and trustees acting in an agency or fiduciary capacity.

Guernsey made a special request

It should also include information regarding the legal and beneficial ownership of companies, partnerships, foundations and other persons ? including in the case of collective investment schemes, information of shares, units and other interests, and in the case of trusts, information on settlers, trustees and beneficiaries.

"It is really wide," said Van der Merwe.

The agreements will also allow representatives of the requesting country ? i.e. the Sars investigators ? to be present at interviews being conducted in the requested country. They won't conduct the interviews, but they will be there.

Guernsey made a special request for a clause to be included in their agreement for the parties to agree to exchange technical know-how, develop new audit techniques, identify new areas of non-compliance and jointly study non-compliance areas.

"They were anxious to benefit from our expertise in these areas," Van der Merwe said.