Are You a Trustee Who Has Never Registered a Trust for Income Tax or Filed Tax Returns? Here's Why You Need to Act Now

In our engagements with new clients, we continue to encounter trusts that have never been registered for income tax with SARS and, as a result, have never submitted Trust income tax returns. In many cases, these trusts own valuable assets such as property, investments or loan accounts, yet trustees may be unaware of their ongoing tax compliance obligations.

This is becoming an increasingly important issue following a SARS public notice issued on 27 March 2026, which confirmed that the non-submission of Trust income tax returns constitutes non-compliance in terms of section 211 of the Tax Administration Act, 2011.

What Trustees Need to Know

Administrative penalties for non-compliance became effective from 4 May 2024 and may be imposed on Trusts with outstanding ITR12T income tax returns from the 2024 tax year onwards.

Importantly, these penalties can be levied monthly and may continue until the non-compliance has been resolved.

Where penalties are imposed, SARS may issue a Penalty Assessment Notice (AP34) detailing:

• The penalties charged

• The outstanding tax returns

• The periods affected

• The corrective action required

Can the Penalties Be Challenged?

Depending on the circumstances, trustees may have access to SARS's dispute processes, including:

• Request for Remission (RFR)

• Notice of Objection (NOO)

• Notice of Appeal (NOA)

What Should Trustees Do Now?

If you are a trustee, now is the time to confirm that:

1. Your Trust is registered for income tax with SARS

2. All required ITR12T returns have been submitted

3. Any outstanding SARS correspondence has been addressed

4. Trust records and asset registers are up to date

Ignoring these obligations could result in ongoing monthly penalties and unnecessary compliance headaches.

How CRUX Konsult Can Help

Whether your Trust has never been registered for income tax, has outstanding tax returns, or has already received penalty notices from SARS, we can assist with:

• SARS Trust income tax registrations

• Reviewing historical compliance obligations

• Submission of outstanding ITR12T returns

• Responding to SARS penalty assessments

• Assistance with objections and appeals where applicable

If you are unsure of your Trust's compliance status, contact CRUX Konsult for a Trust compliance health check before SARS identifies the problem.

Further information:https://www.sars.gov.za/businesses-and-employers/trusts/

This article is intended as general information and should not be regarded as specific tax advice. Professional advice should be obtained based on your particular circumstances.