Trusts that distribute income, capital gains, and capital distributions to beneficiaries are required to submit the IT3(t) form via e-filing by 30 September 2024. This submission is crucial for compliance with the South African Revenue Service (SARS) regulations and to ensure accurate tax reporting.
Requirements for IT3(t) Submission
Completion of Trust Financial Statements: The IT3(t) can only be submitted once the trust’s financial statements are finalised. Trustees must ensure that all financial records are accurate and complete before proceeding with the IT3(t) form.
Information to be Submitted
The IT3(t) form requires the following details:
- Demographic Information:
- Reporting Trust: Complete details about the trust.
- Trust Persons/Beneficiaries: Information about all beneficiaries.
- Taxable Distributions:
- Amounts distributed or vested in beneficiaries that are subject to tax.
- Non-Taxable Distributions:
- Details of any non-taxable income distributed to beneficiaries.
- Trust Financial Flows:
- Comprehensive financial transactions of the trust.
- Resolutions:
- Trustees must provide resolutions that detail the distribution of capital and income to beneficiaries. This ensures transparency and accuracy in tax reporting.
Appointing a Representative Taxpayer
Before submitting the IT3(t) data, the trust must appoint a representative taxpayer. This appointment can present challenges, especially with the approaching deadline. Trustees should address this promptly to avoid any delays in submission.
Key Dates and Reconciliation
- Tax Returns Submission Start Date: Tax returns can only be submitted from 13 September 2024.
- Finalising Financial Statements: Trustees must have detailed financial statements ready by 30 September 2024. They must also reconcile the amounts reported on the IT3(t) with those reported by donors, funders, beneficiaries, and the trust in their respective tax returns.
Compliance and SARS Monitoring
SARS is tightening its regulations to prevent revenue leaks. It will compare the tax return submissions of all relevant parties to ensure proper taxation and accurate collection of taxes. Trustees must ensure that all reported amounts are correct and that the right individuals are taxed on distributions.
The IT3(t) submission is a critical component of trust tax compliance. Trustees must prioritise finalising financial statements, appointing a representative taxpayer, and ensuring accurate and timely submission of the IT3(t) form by the 30 September 2024 deadline. Compliance with these requirements will help avoid penalties and ensure proper tax reporting.
