September 21, 12:02IOL

SARS intensifies control over trusts as tax filing season begins

The South African Revenue Service (SARS) has warned trust managers about the necessity of meeting tax obligations with the start of the 2026 trust tax return filing season. The revenue service is paying particular attention to cases of non-filing, assessed losses, and the accurate disclosure of trust assets and income.

The filing season for trusts began last weekend and will run until January 22, 2027. SARS has stipulated that all qualified trusts are required to submit their Income Tax Return for Trusts (ITR12T). Furthermore, passive trust managers have been reminded to declare assets, liabilities, income, and associated expenses.

As part of its compliance efforts, the revenue service will also focus on zero returns and positions with assessed losses. SARS has stated that it is simplifying the registration process by providing a convenient digital solution through the SARS Online Query System, available on the SARS website.

Managers remain responsible for the trust's tax affairs

SARS added that the responsibility for the trust's tax matters lies with the managers, even if they engage a tax specialist to assist in fulfilling their duties. The revenue service also reminded managers that any changes to the registered trust data, including changes in managers, contact details, and addresses, must be reported to SARS within 21 working days.

SARS emphasizes that the exclusive responsibility for obtaining, maintaining, and updating accurate information about the trust rests solely with the managers. The Trust Property Control Act No. 57 of 1988 (TPCA) requires managers to act with due care, diligence, and skill in managing the trust's affairs. Although managers may delegate certain functions to a tax specialist, the ultimate responsibility for the trust's tax compliance remains with them.

What has changed in form ITR12T

This year, form ITR12T has been improved: information on income, distributed amounts, and certain expenses is now pre-filled using data from IT3(t). Beneficiary schedules will also be completed using third-party information. The revenue service noted that the return now includes expanded questions regarding beneficial ownership, and the tax specialist's contact details have become mandatory.

Managers can submit ITR12T through the SARS eFiling system or at a SARS branch by appointment. SARS has indicated that a simplified form is available for passive trusts on eFiling.

Similar stories

iol.co.zaSeptember 10, 06:55

SARS expands tax control to R100 billion taxi industry

Finance Minister Enoch Godongwana stated that the South African Revenue Service (SARS) is intensifying efforts to broaden the country's tax base. This includes bringing more businesses from the informal economy and the taxi industry into the tax system, as well as boosting the fight against illicit financial flows.

Godongwana made this statement in a written response to parliament when questioned about the government's strategic measures aimed at expanding the tax base rather than increasing rates for already compliant individuals and companies.

He stated that 'SARS continues to expand the tax base by improving registration, filing, and payment where tax compliance remains low. This applies to the informal economy and the taxi industry. Furthermore, SARS is working to identify and respond to illicit financial flows and other forms of non-compliance.'

Informal Economy in SARS's Focus

The Minister noted that the informal economy has been identified as an area where SARS can integrate more taxpayers. According to Godongwana, since the start of the 2024/25 financial year, SARS has helped register 21,890 previously unregistered taxpayers in the informal sector, generating revenue of R314 million.

To identify businesses not registered for tax, SARS utilizes digital platforms, taxpayer education, and simplified registration procedures. The taxi industry, including e-hailing services, is recognized as a priority sector in SARS's work on the informal economy and compliance. Risk assessments, available data, targeted interventions, and taxpayer education are used in this sector to improve registration, reporting, and payments.

Moreover, SARS is strengthening the fight against illicit financial flows, including tax evasion, customs fraud, money laundering, corruption, and organized crime.

Billions Recovered Through Enforcement

During the 2024/25 financial year, SARS conducted 10,142 customs seizures valued at R6.3 billion, and recovered R6.1 billion related to VAT fraud and illegal gold trade.

The Minister emphasized that these results demonstrate SARS's active, coordinated work in curbing illicit financial flows, which is linked to direct revenue collection, preventing leakage, and disrupting criminal value chains.

SARS collaborates with Statistics South Africa and other partners to develop a unified taxonomy and a robust measurement approach that allows differentiation between the formal, informal, and illicit economies. Currently, SARS is transforming intelligence data into measurable compliance and enforcement outcomes.