New SARS reporting puts trusts under the microscope
The South African Revenue Service (“SARS”) has had trusts under a microscope since April 2023 when the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022 came into full effect. SARS has issued stern warnings to trustees to ensure the accurate and honest submission of trust tax returns and made it abundantly clear that trustees can no longer shift the responsibility of managing a trust’s tax affairs entirely to tax practitioners. Trustees must understand trust-specific tax rules to avoid penalties and legal consequences.