Can a trust that became dormant, have no assets and liabilities and distributed total capital be classified as dormant by SARS with the effect of not needing to submit income tax returns?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
In terms of paragraph 2, if the notice (we used number 600 for 2018, the following persons must submit an income tax return:
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…;
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every trust which is a resident; …
The notice makes no reference to an amount of gross income, as does for companies. We therefore agree with you – the return must be submitted until the trust ceases to be person (when it is revoked).