02/11/2026
🚨 TRUSTEES BEWARE: OUTSTANDING TRUST TAX RETURNS COULD COST YOU THOUSANDS!
SARS FINAL DEMANDS – YOU HAVE 21 BUSINESS DAYS TO ACT!
SARS is tightening its enforcement of tax compliance for trusts, and trustees cannot afford to ignore outstanding income tax returns.
Under Government Notice 7314 of 27 March 2026, trusts that fail to submit outstanding income tax returns within 21 business days of the issue date of a qualifying SARS final demand may face recurring administrative penalties.
💰 THE COST OF NON-COMPLIANCE
- Penalties range from R250 to R16,000 per month, depending on the applicable taxable-income category.
- Penalties may recur monthly while returns remain outstanding.
- The maximum penalty does not automatically apply to every trust.
- The requirements apply to outstanding trust income tax returns from the 2024 year of assessment onwards.
⚠️ DORMANT TRUST? YOU STILL NEED TO FILE!
A trust that earns no income or conducts no economic activity is not automatically exempt from submitting annual income tax returns.
SARS has confirmed that registered resident trusts must comply with their annual filing obligations, even when economically inactive.
✅ WHAT SHOULD TRUSTEES AND TAX PRACTITIONERS DO NOW?
1. Check SARS eFiling for final demands and penalty assessments.
2. Verify outstanding returns, including those from previous years.
3. Check the 21-business-day deadline, calculated from the issue date of the qualifying final demand.
4. Submit outstanding returns urgently to prevent further penalties.
5. Review penalty assessments and consider requesting remission where justified.
6. Regularise dormant trusts and consider formal termination and tax deregistration where appropriate.
📌 IMPORTANT: A cancelled penalty does not necessarily mean that the underlying filing obligation has been resolved.
Trustees remain responsible for ensuring that their trusts meet their SARS compliance obligations.
Don't wait until recurring penalties become an expensive problem.
ACT NOW – CHECK YOUR TRUST'S TAX COMPLIANCE STATUS!
📚 Legal reference: Sections 210 and 211 of the Tax Administration Act 28 of 2011, read with Government Notice 7314, Government Gazette 54417, dated 27 March 2026.
