SARS has changed the income tax return for Trusts. Here's how you can complete yours correctly by 25 November 2016
If your company is a Trust, or your company owns a Trust, you must submit your ITR12T by 25 November 2016. That's if you're submitting it manually at a SARS branch.
If you're submitting it via eFiling, then you have until 31 January 2017 to file.
Either way it doesn't leave you much time. Especially because SARS has changed the income tax return form yet again.
But you really don't need to worry about that. I have the updated form in front of me and I'm going to show you how to fill it in, in nine easy steps.
Let's take a look.
How to make yourself invisible to SARS
The key to reducing how much tax you pay is staying off SARS' radar.
SARS has conducted R1.8 million audits. They've added 100s of new tax collectors and auditors to their payroll and each one has his own collection targets to meet.
This means two things:
But here's how you can make yourself invisible to SARS...
If you're not compliant, your chances of an audit this year have just doubled, and
You will pay more in penalties.
How to complete the income tax return for Trusts in nine easy steps
The tax return has an automated questionnaire that gives you different fields to fill out based on your selections and answers. This is just like the first page of the individual and company income tax returns on eFiling.
SARS has made some changes to how the form looks. There will be a 'wrapper' form on both eFiling and Branch submissions from where you can navigate the form.
Step #1: Choose the tax return under the drop down menu on the top right. Click on ITR12T, you'll see the screen above. Click on 'Edit', which is one of the options of 'My menu' on the far right side of the screen. This function will let you create the ITR12T form. The form will expand just like with personal and company income tax returns. See screens below. You can get a sample of the ITR12T form here.
Step #2: The initial question confirms if the trust details, such as the banking and contact details are right. The Practical Tax Handbook explains the consequences of not having updated details.
Step #3: If you select 'No', you can't complete the return.
Step #4: If you select 'Yes', you're verifying the contact details and particulars of the trust representative as correct, and extra questions will come up.
Keep reading for the next five steps…
Don't become SARS' victim by not completing the new income tax return for trusts (ITR12T) correctly
SARS has introduced a new form for you to fill out on eFiling if you have a trust.
Completing the new Income Tax Return for Trusts (ITR12T) can be a mission especially when you consider the fact that the new ITR12T requires more information than the previous one did.
This means mistakes can easily creep in. But they don't have to.
Here's how to take the hassle out completing the new ITR12T form
Five more steps to complete your ITR12T
Step #5: Continue completing the rest of the form
Step #6: When you complete all the questions, click on 'Done'.
Step #7: An extra tab 'Return information' will display as one of the left menu options besides the form. Click on the 'Return Information' this will display the ITR12T form.
Step #8: The 'My Menu' section will expand to include 'Return Information' after you submit and create the form.
Step #9: Complete the field 'Details of Consolidated Transactions for Trust' below if there are more than 50 persons/beneficiaries.
The Practical Tax Handbook will take you through all these steps in a lot more detail and includes all the screen shots of the relevant pages of the tax return, making it much simpler for you to get ready for your submission on 25 November 2016.
P.S. Don't forget there are two requirements you must meet before you complete the ITR12T form. Click here to find out what they are
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