Best Legal Q&A is a compilation of top legal articles written by legal professionals practising at member firms in the Phatshoane Henney Group of Associated Law Firms. These articles have been written in response to real-life questions and scenarios encountered by professionals during 2019 across the Phatshoane Henney Group. The articles are written in a hands-on question and answer style offering practical solutions and recommendations that are plain to understand and easy to incorporate into everyday life. This publication is a useful reference tool for both informed and uninformed readers and should be kept at hand as a useful resource for answering some of those difficult daily legal questions
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.
