10/06/2026
Trustees, take note: SARS has moved from reminders to enforcement.
For many years, trusts that fell behind on their tax compliance often received reminders and opportunities to regularise their affairs. That landscape has changed.
SARS has begun issuing final letters of demand to trusts with outstanding tax returns, signalling a far more assertive approach to trust compliance. Trusts that fail to act within the prescribed period may face monthly administrative penalties ranging from R250 to R16 000 per outstanding return, with penalties continuing until the non-compliance is corrected.
Importantly:
✔️ All trusts are required to submit annual income tax returns - even dormant or inactive trusts.
✔️ Trustees are responsible for ensuring that trust records and tax affairs are up to date.
✔️ SARS is increasingly using third-party data and automated systems to identify non-compliance.
📌 Jeneen's take:
"One of the biggest misconceptions we encounter is that a dormant trust has no filing obligations. SARS has made it clear that this is not the case."
If you are a trustee, now is a good time to review:
• Outstanding tax returns
• Trust registration details
• Beneficiary information and IT3(t) reporting
• Whether the trust remains fit for purpose
The message from SARS is clear: trust compliance is no longer something that can be left until later.
