Trustees of dormant trusts should act urgently as SARS begins enforcing administrative penalties for non-compliance. Phia van der Spuy, director of Trusteeze, warns that “gone are the days when you can leave an inactive trust hanging,” urging trustees to “physically deregister it to save you penalties.”
She stresses that dormant trusts are not exempt from annual tax return obligations and that trustees should submit all outstanding returns before applying for deregistration. Trusts that no longer serve a purpose must still follow SARS’ formal deregistration process, including settling tax liabilities, to avoid mounting penalties and unnecessary administrative complications.
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Phia van der Spuy is a FISA member, FPSA® and founder of Trusteeze.