The effect of changes to laws on trusts
The first change is not actually a change, but the result of my having finally come around to the fact that trusts must register as taxpayers. Here’s the effect –
- It is not a simple job any more as we also have to appoint a representative, a process that SARS has made unnecessarily difficult.
- We charge R2 800 for this registration.
- Trusts are not automatically provisional taxpayers.
- Annual tax returns must be submitted despite their being Nils.
- We charge R720 if there were no distributions.
The next change is the result of the Taxation Laws (Anti Money Laundering and Anti Terrorism Financing) Amendments Act. Here’s the effect –
- A return must be submitted to the Master of the High Court for every trust reporting details of the “Beneficial owners” of the trust. These are –
- The founder
- The trustees
- All named beneficiaries
- Anyone else who has effective control of the trust
- A new return must be submitted whenever any of the information changes.
- We charge R800 for this return.
So, the additional cost of forming a trust has increased by R3 600, and the annual maintenance cost by R720.
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