Trusts now need bank accounts
It was a while back when I wrote a post called “Does a trust need a bank account?” and now the game has changed!
My argument then was founded on the Trust Properties Control Act that requires a trust to open a bank account as soon as it receives money. My easy way around that was to make the initial donation something other than money, such as a stamp or coin collection valued at R100.
But now along comes SARS! All trusts have to register for tax (despite this contradicting the definition of a taxpayer in the Income Tax Act) and now SARS requires that it proves that it has a bank account. Otherwise they will not register it. Solution? Open a bank account, prove it to SARS, register for tax, make the trust dormant for tax purposes, close the bank account. What a totally ridiculous sequence of events!
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