Trusts Under the Microscope: SARS Steps Up Enforcement on Non-Compliance
Tax Consulting South Africa
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The South African Revenue Service (SARS) has reported a recent surge in trust tax return submissions, yet it says it remains concerned about the overall level of compliance within the trust sector. No wonder then that SARS is significantly increasing its scrutiny of trusts to ensure compliance with tax laws, focusing intensely on registration, accurate declarations, and timely payments.
Figures for the 2024 tax year shows progress, with 84,134 current-year returns and an additional 80,132 prior-year returns lodged— a total of 164,266 submissions. However, SARS believes compliance in the trust space could improve further.
This sharper focus comes as SARS embarks on an ambitious campaign, known as Project AmaBillions, to collect an additional R70 billion over the next three years, signalling a new era of enforcement. Following the Budget Speech in May 2025, SARS said in the current tough domestic and global economic conditions, the R1.986 trillion revenue target for the 2025/26 financial year is a challenging estimate and imposes the responsibility on SARS to implement revenue raising initiatives.
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