A Change In The Law...
Trustees in South Africa are facing significant changes in their roles and responsibilities. The Trust Property Control Act, which governs trusts, is being updated to provide clearer guidance to trustees. These changes require trustees to act as third-party data providers to the South African Revenue Service (SARS) and the Master of the High Court, similar to banks. Non-compliance with these requirements can result in fines of up to R10 million or imprisonment for up to five years.
The concept of “beneficial ownership” has gained importance in South African law. Although some may question its applicability, the definition of beneficial ownership has been extended to include trusts. Trustees are now responsible for maintaining accurate and up-to-date information about the beneficial owners of the trust and the accountable institutions they deal with.
To comply with the new legislation, trustees must submit trust-related information to SARS and the Master of the High Court. However, the data submission options provided by SARS and the Master of the High Court, such as secure file transfer technologies, may pose challenges for accountants and trust service providers who need to report trust data in bulk. The current systems are either flawed or expensive and efforts need to be taken by SARS and the Master of the High Court to address these challenges and find solutions.
There has been some confusion regarding the first compulsory submission date, which was initially set for September 2023. The testing phase has been postponed to July 2023, and further communication from SARS and the Master of the High Court regarding submission dates is expected. CA Trust Company recognizes the complexities and challenges associated with these changes and is ready to assist trustees in navigating the new requirements and ensuring compliance.
CA Trust Company has a team of experienced professionals who specialize in trust administration and can provide the necessary guidance and support. They are committed to helping trustees adapt to the evolving legal landscape and protect their interests. Trustees are encouraged to reach out to CA Trust Company with any questions or concerns they may have.
