IT3(T) SUBMISSION DEADLINE – 30 SEPTEMBER

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SARS now mandates that ALL Trusts submit IT3(t) third-party returns, these returns are non-negotiable and will be used to cross-reference beneficiary, donor, and Trust tax submissions. Any inconsistencies may trigger penalties, audits, and reassessments.

The ITR3(t) for Trusts requires the following information:

  • Full demographic details of the Trust and its beneficiaries
  • Financial statements for the relevant year
  • All taxable and non-taxable amounts vested in beneficiaries
  • Details of loans, donations, and interest-free funding
  • Reconciliation of all amounts reported/to be reported by the Trust, beneficiaries, and funders

 

SARS will compare all third-party returns to ensure that the correct parties are taxed and that no revenue is lost. Section 7C Donations Tax may apply to low-interest or interest-free loans, and donors must declare these amounts in their own tax returns.

The IT3(t)’s are due by September 30, the expectation is that Trustees must have finalised financial records by then. They also have to perform a reconciliation between amounts to be reported on the IT3(t) and amounts reported/to be reported by donors/funders, beneficiaries, and the Trust in their respective provisional tax returns, annual tax returns, and donations tax returns.

Trustees must keep proper systems in place to manage the required information effectively. With SARS’ renewed focus on the compulsory application of rules to avoid SARS to be out of pocket and to reduce Trustee from blindly distributing all income and capital gains to beneficiaries who paid little or no tax.

The submission includes amounts attributed to donors/funders – it is a misconception that the IT3(t) only deals with amounts distributed to beneficiaries.

 

Non-Compliance Consequences:

  • SARS penalties and interest
  • Tax mismatches across parties
  • Trustee liability for inaccurate or omitted disclosures
  • Increased audit risk

 

Please note that the full responsibility always rests with Taxpayer.

We urge you to act immediately. Failure to comply may result in financial and legal consequences.