Trustees: The new tax return – take advice now!

CalTowards the end of 2015, SARS introduced a new IT12T tax return form for trusts. For the 2015 tax year these need to be completed in full. The return needs be lodged on or by 29 January 2016.Trustees be aware – the form has become very detailed and will need planning and preparation.

Why a new form?  

The SARS five year compliance programme (2012-2017) focused on high risk areas to SARS – one of which was high net-worth individuals and the use of trusts to shield assets from tax liability.

Thus, SARS is looking to gain new tax revenues from trusts and with twenty two pages of disclosure you need to be on your guard when completing the return.

The main features

  • Expanded financial and legal reporting requirements
    – Details of the trust’s offshore and local assets and liabilities
    – Comprehensive information on types of income (rental, farming partnerships etc)
  • Foreign and local capital gains and distribution of such gains to beneficiaries
  • Full details of all parties contributing funds, assets, loans etc. into the trust will need to be provided as well as details of the actual transactions made
  • Full details of any party benefitting in any way from the trust as well as details of the benefits received or enjoyed will need to be provided for every beneficiary:
    – If there are 50 or less people to whom these transactions applied, then list every transaction in the IT12T return.
    – If there are more than 50 people then provide detail of every transaction in excess of R500,000
  • What type of rights the beneficiaries enjoy (vested or discretionary rights).

As you can see this is quite an undertaking which apart from the time to prepare will also require substantial knowledge and understanding of taxation. 

To complicate matters further SARS intends to issue a replacement for this new return. Note that any data captured and saved but not yet submitted to SARS on the current return will be lost on implementation of the new return.

Should you require our services in this regard, please contact Petrus Erasmus at or on 021 405 8612, to assist you.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your business consultant for specific and detailed advice.


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