South African trusts face the most demanding compliance environment in South Africa’s history, with the South African Revenue Service, the Financial Intelligence Centre and the Master of the High Court simultaneously tightening enforcement across tax, anti-money laundering and beneficial ownership obligations.
From 1 March 2026, SARS will begin imposing monthly administrative penalties on trusts with outstanding returns – the final piece in a regulatory trifecta that already includes criminal sanctions of up to R 10 million and 5 years’ imprisonment under the Trust Property Control Act, and administrative fines reaching R 50 million under the FIC Act.
Failure by trustees to adhere to their duties, not keeping proper records, like minutes of meetings and signed resolutions, and the trust not complying with its tax obligations exposes trustees to criminal sanction and places advisors at risk.
Above article by Wim Visser
Head of Wills, Estates, Trusts & Planning
