SARS has taken particular aim at trusts over the past year or so, working to ensure that every corner is thoroughly explored to bolster revenue collection.<\/p>\n\n\n\n
As part of its broader strategy to make tax compliance easy and non-compliance expensive, the revenue service published a draft notice under section 210(2) of the Tax Administration Act in late 2025, formally proposing fixed administrative penalties for trusts that fail to submit their tax returns.<\/p>\n\n\n\n
Although still in draft form, tax experts said that the publication marks a clear shift from years of warnings to concrete action<\/strong>.<\/p>\n\n\n\n The notice states that a trust may be penalised if it does not submit its income tax return\u2014starting from the 2023 year of assessment\u2014within 21 business days after SARS issues a final demand.<\/p>\n\n\n\n The draft notice was published on 3 December 2025 for public comment. Comments must reach SARS by 28 January 2026.<\/p>\n\n\n\n Notably, this is after the 19 January filing deadline\u2014but this by no means puts trusts and trustees in the clear.<\/p>\n\n\n\n Should the new penalty framework be enacted, it will apply retroactively (from the 2023 tax year), and any trustees found in violation could suffer the consequences.<\/p>\n\n\n\n Trustees carry a legal duty to ensure that a trust meets all its tax obligations. This includes timely submission of returns, accurate financial reporting, and maintaining full and reliable records.<\/p>\n\n\n\n If the policy is enacted, these responsibilities carry sharper consequences:<\/p>\n\n\n\n SARS encouraged trustees to gather all supporting documents, verify beneficiary information, and use SARS eFiling tools or online guides to get their tax affairs in order. <\/p>\n\n\n\n “This approach aims to make the process straightforward and instil confidence in submitting accurate returns,” it said.<\/p>\n\n\n\n Trusts with fewer than ten beneficiaries that are not registered for eFiling can submit returns at a SARS branch. <\/p>\n\n\n\n Trustees can also book an appointment in advance via SARS contact channels and prepare all required documents, such as trust deeds and beneficiary lists, to ensure a smooth submission process.<\/p>\n\n\n\n “Trustees are reminded that compliance is mandatory, and failure to comply can result in fines and penalties,” it said.<\/p>\n\n\n\n\n
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Provisional taxpayers<\/h2>\n\n\n\n
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