With effect from 1 October 2014 SARS introduced a new income tax return form for trusts (“ITR12T”). From the 2015 tax year onwards these income tax returns need to be completed in full.  

The due date for the submission of the trust income tax returns for the 2015 year of assessment is 29 January 2016 (if provisional taxpayers) and 27 November 2015 (if non-provisional taxpayers.)

Why a new form?

The main features:

• Expanded financial and legal reporting requirements:
  • Details of both local and foreign assets and liabilities;
  • Comprehensive information on types of income (rental, farming partnerships etc) breaking down the income and the related expenditure’
  • Details of both local and foreign income earned and the distribution of such income .
• Full details of all parties introducing funds into the trust by way of loans and/or donations as well as details relating to the actual transactions.
• Full details of any transactions applicable to persons that are connected persons in relation to that trust and/or beneficiaries and/or the settlor and/or donor
  • Where the number of such persons is less 50 or less, relevant details need to be completed for each person
  • Where the number of such persons is 50 or more, relevant details will be required to be submitted for persons with total transactions in excess of R500,000, with a consolidated summary required of the income for all parties.
• 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 of the parties to the trust and the transactions undertaken by the trustees.

The bottom line is that there is probably been no better time to seek advice from your tax adviser.