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News & Press: Trusts

Underlying principles of BCR031 currently under review

16 August 2012   (0 Comments)
Posted by: SAIT Technical
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By SARS Legal & Policy

Binding Class Ruling (BCR) 031 was issued by SARS on 14 October 2011.

The ruling deals with the question as to whether:

  • dividends received and distributed by a trust will retain its nature as dividends in the hands of the beneficiaries of the trust; and
  • beneficial units allocated to beneficiaries will constitute equity instruments in their hands.

SARS has indicated that theunderlying principles confirmed in this ruling are currently under review. This ruling is only binding in respect of the specific class members to whom it was issued and may not be relied upon by a third party.

Please click here to download BCR 031.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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