Amendments proposed to clarify attachment of living annuities and trust assets
The South African Law Reform Commission releases its final report containing recommendations on changes to the Maintenance Act.
The decision addresses the recovery of VAT on payments made under loan cover provided free of charge.
Read moreThe South African Law Reform Commission releases its final report containing recommendations on changes to the Maintenance Act.
The context to Treasury’s concern is where the arm’s length interest rate is lower than the official rate of interest.
One of the guides applies to the Income Tax Return for Trusts.
An amendment to the Income Tax Act makes it easier for Sars to collect taxes owed by tax non-resident beneficiaries of South African trusts.
Persons who are trustees in their personal capacity only are not accountable institutions.
It may not always be clear when someone has crossed the line into carrying on the business of creating a trust arrangement for a client.
The amendments encompass debt denominated in a foreign currency and the primary residence exclusion.
Trusts that have failed to comply with the rules are exposed to penalties and fines.
Pay attention to the conditions that must be met for an exemption.
Complaints about current accounts and digital banking were the two largest categories of cases opened with the ombudsman.
The offences relate to not recording information about beneficial ownership and service providers that are accountable institutions.
Trustees will have to report directly to Sars, outside of the current trust tax return process, and before the trust tax return is due.
It also wants to address the inconsistent treatment of non-resident beneficiaries when capital gains are distributed.
Among other things, trustees are obliged to keep adequate records in relation to beneficial ownership.
One of the unforeseen consequences could be the premature acquisition of rights.
If a trust is not valid, the trustees can be held personally liable for any taxes related to the trust activities.