The South African Revenue Service (SARS) has recently provided important clarification regarding administrative penalties imposed on trusts.

An additional administrative penalty had recently been raised in respect of certain trusts, adding to existing concerns surrounding the ongoing filing non-compliance within the trust sector. However, SARS has confirmed that it is now reversing this newly imposed penalty, as well as the earlier administrative penalties that had previously been raised against trusts.

What does this mean for trustees?

If you are a trustee or are responsible for the administration of a trust, it is important not to assume that the penalties have automatically disappeared from your records.

SARS has advised that trustees should access the Penalty Statement of Account on eFiling to verify that the administrative penalties have indeed been removed.

This serves as an important reminder that trustees should ensure that all trust tax returns and related compliance obligations are submitted accurately and on time to avoid future penalties or enforcement action.

Need assistance?

Trust compliance can be complex, and keeping up with SARS’ evolving requirements is essential. If you require assistance with your trust’s tax compliance, annual submissions, or general trust administration, our Trusts & Estates team is available to guide you through the process and help ensure your trust remains compliant.