Following strong objections from the trust industry, SARS has withdrawn premature administrative penalties issued to trusts for outstanding 2024 and 2025 tax returns. The reversal came after tax experts argued that the final demand letters were sent before the legal framework permitting the penalties had taken effect.
Phia van der Spuy, FISA member, FPSA® and founder of Trusteeze, said the February demand letters were not aligned with legislation because the enabling public notice was only gazetted in late March. SARS will issue new demand notices before imposing penalties.
Trustees are warned that this is only temporary relief and that all outstanding trust tax returns must still be submitted to avoid future penalties.
You can read the Moneyweb article by Amanda Visser here.