During the 2014 tax year, the South African Revenue ServiceThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... (“SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently...“) introduced a new income taxIncome Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction. It serves as a major source of revenue for governments and funds various public expenditures, such as infrastructure projects, healthcare, education, national security, and welfare programs. The tax is generally calculated as a percentage of the taxable...tax returnA Tax Return is a formal statement filed by an individual or entity that details income, expenses, and other pertinent tax information to a tax authority. Its primary purpose is to assess tax liability, determine refunds owed, or highlight outstanding taxes due. Tax returns may include information about earnings, capital gains, allowable deductions, and credits, depending on the tax regulations... for trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. (ITR12T) which was much more comprehensive than its predecessor. The contents of the return were also customised based on the answers to certain questions. SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... has recently announced further enhancements to the ITR12T which apply to the 2015 tax year. The purpose of these amendments seems to be to ensure that the return that the trustees submit to SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... incorporates all relevant transactions and activities that have an impact on the assessment of tax in a given financial year. The updated return was available from 12 October 2015. Some of the more significant changes to the return announced by SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... are summarised below.

New sections have been included in the revised return to deal with the following:

• the disclosure of distributions received from a Real Estate Investment TrustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. (“REIT“);
• the disclosure of donations by the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. to any Public Benefit Organisation which may be deductible in terms of section18A of the Income TaxIncome Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction. It serves as a major source of revenue for governments and funds various public expenditures, such as infrastructure projects, healthcare, education, national security, and welfare programs. The tax is generally calculated as a percentage of the taxable... Act. SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... will calculate the 10{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e} limitation on deductible donations and any excess amount will be carried forward to the next year of assessment. The return now also distinguishes a trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. that is a collective investment scheme (“CIS“) from other trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. in relation to such donations;
• the disclosure of expenditure incurred in exchange for venture capital company (“VCC“) shares which may be deductible in terms of section12J of the Income TaxIncome Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction. It serves as a major source of revenue for governments and funds various public expenditures, such as infrastructure projects, healthcare, education, national security, and welfare programs. The tax is generally calculated as a percentage of the taxable... Act; and
• any recoupment in respect of VCC shares which were sold for which a tax deduction was previously allowed. The amount recouped in respect of VCC shares sold must be added to the trust’s taxable incomeThe tax base is a fundamental concept in taxation, representing the total amount of economic activity or assets upon which a tax is levied. It is the foundation upon which governments calculate the amount of tax owed, based on factors like income, property value, sales, or corporate profits. Understanding the tax base is essential for tax professionals, businesses, and policymakers,....

In the 2014 tax returnA Tax Return is a formal statement filed by an individual or entity that details income, expenses, and other pertinent tax information to a tax authority. Its primary purpose is to assess tax liability, determine refunds owed, or highlight outstanding taxes due. Tax returns may include information about earnings, capital gains, allowable deductions, and credits, depending on the tax regulations..., much of the new information required was optional. However, this information has become mandatory with effect from the 2015 tax year.

For example, in 2014, only the information regarding beneficiariesIn tax law, a beneficiary is the person or entity entitled to receive funds or other benefits from an arrangement, such as a trust or a will. Beneficiaries are often named explicitly in legal documents, ensuring that their rights and interests are protected. The concept of a beneficiary also extends to corporate contexts, such as when a company or trust... who transacted with the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. was mandatory. Now, the details of all persons (individuals, companies or trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms.) which transacted with the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. must be provided. If the number of persons who transacted with the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. is 50 or fewer, the details of every person and the related transactions must be provided. If more than 50 persons transacted with the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., then the details of the transactions may be provided on a consolidated basis, together with the details of every person where the aggregate of the transactions was in excess of R500 000 (limited to the top 50 persons based on aggregated transactional value). The information which must be disclosed includes full details of all parties contributing funds or assets to the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. and the relevant transactions, as well as details of any party benefitting from the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms.. A non-residency indicator has been added to the details of persons who participated in transactions with the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. to make the taxpayer reference number optional in the case of non-residents.

Other previously optional information which is now mandatory includes all local and foreign income fields, and certain fields in the schedule of local and foreign capital gainsCapital gains refer to the profit earned when an asset, such as real estate, stocks, bonds, or even a collectible, is sold or exchanged for a price that exceeds its original purchase cost. These gains are a critical component of personal and corporate finance, as they influence investment strategies and tax obligations. Capital gains are realised when an asset is... and losses.

The statement of assets and liabilities must also be completed. In the updated return, the local and foreign assets have been grouped together under total assets, with the local and foreign liabilities also being grouped together under total liabilities. Interest-bearing loan accounts and interest-free loan accounts must be shown separately in the assets schedule and a new item has been added in respect of TrustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. Capital – Retained Earnings.

The supporting documentation required in respect of the return includes the annual financial statements, all certificates and documents relating to income and deductions, documentary proof of any tax credits claimed and particulars of the assets and liabilities disclosed. All supporting documents should be retained for five years, as SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... may request the documents if verification is required.

There are additional schedules which must be completed if the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms. was engaged in mining operations or if the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., together with any connected person in relation to the trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., holds at least 10{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e} of the participation rights in any controlled foreign company (“CFCControlled Foreign Corporations (CFCs) are a fundamental concept in international taxation, referring to foreign companies that are under the control of domestic shareholders. Control is typically established when residents of a country, either individually or collectively, own more than a specified percentage of a foreign company’s shares, voting rights, or have the ability to exert substantial influence over its decision-making....“).

Trustees should be aware of the increased level of reporting required by SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... in respect of trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., and should ensure that all the relevant information is available for the completion of the trust’s income taxIncome Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction. It serves as a major source of revenue for governments and funds various public expenditures, such as infrastructure projects, healthcare, education, national security, and welfare programs. The tax is generally calculated as a percentage of the taxable...tax returnA Tax Return is a formal statement filed by an individual or entity that details income, expenses, and other pertinent tax information to a tax authority. Its primary purpose is to assess tax liability, determine refunds owed, or highlight outstanding taxes due. Tax returns may include information about earnings, capital gains, allowable deductions, and credits, depending on the tax regulations....