Important Trust Compliance Updates Every Trustee Should Know

Trust compliance in South Africa has become a major focus area for SARS and the Master of the High Court. Trustees are now facing stricter reporting requirements, increased compliance monitoring, and heavier penalties for non-compliance. Whether your trust is active or dormant, it is essential to ensure that all trust obligations are up to date and properly managed. Below are some of the key compliance areas trustees should be aware of.

SARS Is Increasing Compliance Checks on Trusts

SARS has intensified its compliance drive around trusts, especially where tax returns are outstanding or incomplete.

Administrative penalties are now being issued more aggressively for:

• Outstanding trust tax returns

• Late submissions

The 2 points below are not currently triggering penalties right off the bat, but rather result in SARS potentially requesting further information/ documentation. Failing to submit these documents may result in SARS audits. 

• Incomplete information on returns – for example, non-disclosure of loans, detailed distributions to beneficiaries

• Failure to update trust details

Even dormant trusts may still need to submit returns. Ignoring SARS correspondence can quickly become expensive.

Every Trust Must Have a SARS Representative

All trusts are required to appoint an official SARS representative, who is typically one of the Trustee’s

The SARS representative acts as the trust’s primary point of contact with SARS and is generally responsible for

• Communication with SARS

• Ensuring compliance

• Ensuring that submissions are made timeously

• Keeping all the trust details accurate and up to date

Trustees should ensure that the appointed representative’s details remain current, as outdated information may result in delays, missed correspondence, or compliance issues

Beneficial Ownership Registers submissions Are Mandatory

Trusts are now required to submit beneficial ownership register to the Master of the High Court. These submissions are completed online and form part of ongoing trust compliance requirements.

The register generally includes information relating to:

• The trust itself, such as the Trust name and registration number

• Personal information of the Founders, Trustees and Beneficiaries

• Individuals exercising effective control over the trust

Importantly,  trustees are required to update the beneficial ownership register whenever there are changes to information such as:

• Trustees

• Beneficiaries

• Personal information (e.g. address or contact information)

• Ownership structures

Failure to comply can result in severe consequences, including:

• Penalties of up to R10 million

• Possible imprisonment

This is one of the most important compliance areas trustees should not be overlooked by trustees

Keeping a trust compliant is no longer something that can be postponed or overlooked. With increased scrutiny from SARS and stricter beneficial ownership requirements, trustees should ensure that all filings, records, and trust information remain accurate and current to avoid unnecessary penalties and audits.

For professional assistance with trust compliance, SARS submissions, beneficial ownership registers, and general trust administration, contact My Finance Partner at info@mfpartner.co.za