Practical Guidance: Completing the New ITR12T
Presenters : Cheryl Howard
Overview
The filing season for the submission of the Annual Return of Income for Trusts (IT12T) commences on 16 September 2024 and ends on 20 January 2025.
Changes are made to the IT12T on 23 June 2023, mainly including the Beneficial Ownership Declaration and the details of the mandatory supporting documentation required to be uploaded prior to the submission of the Return. If the supporting documentation is not uploaded, the Return is marked as pending and is not recognised as submitted.
All registered trusts are required to register for income tax and submit annual returns of income, even if they are dormant or passive, such as non-income-producing property owning only.
This video is a hands-on practical walkthrough of how to complete the Return of Income, upload the mandatory documentation, prepare the supporting documentation, and lodge the return in a timely manner to ensure minimal enquiries from SARS.
The video includes practical examples of how to compute the figures for submission, an overview of the information required in the Annual Financial Statements, and the trustees’ mandatory documentation.
Video Content
A walkthrough of the questions to be answered in the Form Wizard in order to generate the Return of Income.
Within the time frame for the timely submission of the Return of Income, the following steps are required to ensure a smooth filing season:
Tax Practitioner (PRIOR to Filing Date):
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Check that the correct contact details, address, and banking details are recorded on eFiling. If not, amend them via the RAV01 form.
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Ensure that the Main Trustee and SARS Taxpayer Representative are appointed and verified. If not, use the online portal to upload the required documentation for the appointment of the Main Trustee.
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Note: The online portal, available on the SARS Home Page, is more efficient and expedient.
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Tax Practitioner (in Preparation for the Submission of the IT12T):
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Signed Annual Financial Statements (AFS).
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Details of Beneficiaries/Taxpayer (full contact details, tax number) for attribution, vesting, and distributions.
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Details of loan accounts, including terms of the loan, whether subject to S7C, and loan account balance.
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Trust statutory information, including trustee resolutions, amendments to the trust deed, Letters of Authority, and minutes of trustees' meetings.
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Master of High Court UBO form.
Accountant:
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Determine the taxable income and its allocation for vesting or distributions, considering any attributions due to loan accounts.
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Prepare the Annual Financial Statements.
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Prepare supporting documentation for the figures in the Return of Income.
Trustees:
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Ensure that resolutions and minutes are in place and have been signed.
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Ensure the records are complete for the trust deed, amendments thereto, and the latest Letters of Authority are in place.
Competencies Developed
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Understanding the filing season timeline and the pre-preparation administration required to ensure a smooth filing season.
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Understanding the buildup to the questions in the Form Wizard in order to generate the IT12T on eFiling.
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Understanding the mandatory information required to be lodged with the IT12T in order for the assessment to be issued.
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Understanding the supporting documentation required to prepare the IT12T and to manage any subsequent SARS queries.