Shuttleworth v South African Reserve Bank

Mark Shuttleworth, a South African-born entrepreneur, emigrated in 2001. Under the Exchange Control Regulations made under the Currency and Exchanges Act 9 of 1933, his South African assets were placed in blocked accounts and could not be expatriated without permission from the South African Reserve Bank (SARB). In 2008 and again in 2009 Shuttleworth applied, through an authorised dealer bank, for permission to transfer his blocked assets abroad. SARB approved the transfers subject to payment of a flat ten per cent 'exit levy' on the value of the assets exported, imposed in terms of Exchange Control Circulars and Rulings. Shuttleworth paid a total of R250,474,893.50 under protest and challenged the levy, contending that it was unlawful, unconstitutional, and amounted to an impermissible tax imposed without parliamentary authorisation. He sought review and repayment of the levy and wide-ranging constitutional relief against the exchange control framework.

The appeal and cross-appeal were upheld in part. The decision of the South African Reserve Bank to impose the ten per cent exit levy was set aside. SARB was ordered to repay Shuttleworth R250,474,893.50 with interest at the prescribed rate from 13 April 2012 to date of payment. The High Court order was substituted, and costs orders were made in favour of Shuttleworth.

This case is a leading authority on the limits of administrative power in South African exchange control law. It affirms that significant financial impositions resembling taxes or levies require clear statutory authority and parliamentary approval, and cannot be introduced through policy, circulars, or administrative practice. The judgment reinforces constitutional principles relating to public finance, legality, and the separation of powers, and clarifies the non-binding status of exchange control circulars and rulings.