Reminder: Trusts have a duty to register for income tax purposes

27 June 2022
Accounting
South African Accounting Academy

The representative taxpayers of trusts are the trustees of a trust, but the responsibility to submit the tax return may be conferred on a specific trustee or a tax practitioner.

SARS wishes to remind trustees of trusts that they are required to ensure that the tax returns of trusts are submitted.

Currently a trust, whether active or dormant, must submit an income tax return on an annual basis in line with the requirements issued annually by the Commissioner (as is required in terms of section 66 of the ITA).

For the 2021 year of assessment, the filing season for trusts opened on the 1st of July 2021.

Click here to access more information:

https://www.sars.gov.za/media-release/sars-reminds-representative-taxpayers-of-trusts-of-their-duty-to-register-trusts-for-income-tax-purposes/

Relevance to Auditors, Independent Reviewers & Accountants:

The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
The representative taxpayers of trusts are the trustees of a trust, but the responsibility to submit the tax return may be conferred on a specific trustee or a tax practitioner.

Relevance to Your clients:

The representative taxpayers of trusts are the trustees of a trust, but the responsibility to submit the tax return may be conferred on a specific trustee or a tax practitioner

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