HomeHome SearchSearch MenuMenu Our productsOur products

Nine transaction details you must include in your ITR12T form so it won't trigger a SARS audit

by , 03 December 2014
SARS recently released the new ITR12T form. It's specifically for Trusts and SARS created the form to make the process of submitting a tax return for Trusts much easier.

But it also means SARS requires more from you, so it can get the most relevant information about your Trust.

For example, you need to include specific details of transactions within your Trust. If you don't, it could lead to a full on SARS audit of your Trust.

To help you avoid this, I'm going to tell you about the nine transaction details you need to include in your ITR12T...

 

*********** Advertisement ************
 
Get the Practical Tax Loose Leaf on your computer
 
Click here to enjoy the convenience of being able to access the Digital Practical Tax Handbook anywhere
 
***********************************
 

When you complete your ITR14T include these nine transaction details

 
According to How to Successfully Complete your ITR12T, the new ITR12T form has new sections for details of:
 
  • All parties contributing funds or assets into the Trust; 
  • The actual transactions made;
  • Any party benefitting in any way from the Trust; and
  • The benefits received or enjoyed by any beneficiary.
 
To enable the new return to fulfil its purpose, you need to include the relevant information in these new sections: 
 
  1. Taxable income you distributed to or vested in Trust beneficiaries;
  2. Any non-taxable income your Trust distributed or invested;
  3. And capital or assets you Trust distributed or invested in;
  4. Any outstanding loans granted to this Trust;
  5. Any outstanding loans your Trust granted;
  6. Any donations or contributions made to or by your Trust;
  7. Any distributions from other Trusts or foundations;
  8. Any refunds or repayment of contributions made to your Trust; and
  9. The granting to any person of the right of use of assets held by this Trust.
 
But just remember these important rules when you provide these details.
 
*********** Hot off the press  ************
 
Know the Law on Avoiding Tax: You Are Now Presumed GUILTY
 
Dealing with SARS and acing your SARS Audit
 
SARS has been dealt a better hand in dealing with you if you try to avoid tax. SARS knows where it stands. The question is: do you?
 
Do you plan on obtaining an 'innocent' tax benefit? If your main or only reason for entering into any arrangement is to receive a tax benefit, SARS will brand you guilty of avoiding tax...and guess who has to prove their innocence… YOU!
 
 
*************************************
 

When your provide transaction details on your ITR12T, remember these rules

 
If your Trust has 50 people or less involved in these transactions during the year of assessment, provide the details of each transaction for every person.
 
If your Trust has more than 50 people involved in these transactions during the year of assessment, you must provide consolidated details of the transactions.
 
You must also provide the details of each transaction for every person (limited to 50) with the highest transactions of more than R500 000.
 
You must submit the ITR12T via eFiling if a Trust has more than ten beneficiaries where these transactions apply. If you can't submit via eFiling, go into a SARS branch and get a SARS official to help you complete the form.
 
If all the new changes have you feeling a little overwhelmed, don't worry. We have the solution. Check out How to Successfully Complete Your ITR12T for everything you need to know to complete it correctly.
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>