Q: I have a
technical question to pose regarding the new trust tax returns.
If there is a loan account in place in a trust, you have to
declare that to SARS and load the trustees’/beneficiaries’ details. One of the
questions that they pose is the maturity date of the loan, which there isn’t
one in most cases. When I contacted the call centre with this regard they told
me to enter 999 and that it should solve the issue. However this has hasn’t worked
yet because the system says this is not a valid date. Have you had any dealings
with this regard? Do you know how we should handle this?
A: We took the
matter up with SARS. They agree that the return does not cater for the instance
where the loan doesn't have a maturity date. The answer of how to deal with it
this year given by SARS was to put use the last day of the year of assessment
as the date in the return. That is of course not correct, but we suggest you
use it so that you can be able to submit the return.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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.