UNDERSTANDING THE IT3(T) REQUIREMENTS FOR TRUSTS

Article by: Fourways Accountant: ANNJA LOUCA

The IT3(t) form, introduced by SARS, is a new reporting requirement for trustees. It requires trustees to report all distributions made to beneficiaries, including income, capital gains, and capital amounts vested during the tax year.

SARS uses the information from the IT3(t) form to pre-populate beneficiaries' tax returns, ensuring distributions are accurately reported and reducing the chance of errors or omissions.

If a beneficiary has already submitted their tax return or been auto-assessed, the data from the IT3(t) form may lead to their return being re-opened and adjusted to include any distributions received.

What Are a Trustee’s Responsibilities?

As a trustee, you must ensure the IT3(t) form is completed accurately and submitted to SARS on time. This requires maintaining detailed records of all beneficiary distributions made during the tax year. The IT3(t) submission deadline usually coincides with the trust's tax return filing deadline, so staying informed about these dates is essential to avoid penalties.

How Should Beneficiaries Prepare?

Beneficiaries should note that distributions from a trust are reported to SARS and included in their tax returns. Keeping personal records of these distributions and reviewing your tax return thoroughly is important to ensure all information is accurate.

How Should Clients Inform Us?

Clients need to keep us updated on any distributions made or received. This includes sharing detailed records of amounts and dates. Prompt and open communication ensures all required forms are completed accurately and submitted on time.

Working Together for Compliance

Accountants and clients can ensure compliance with the new IT3(t) requirements by:

• Accurate Record-Keeping: Clients must maintain detailed records of all distributions, including income, capital gains, and vested amounts.
• Consistent Communication: Regular updates on distributions or changes throughout the year help ensure accurate reporting.
• Timely Submissions: Completing and submitting required forms, including the IT3(t), by the deadlines prevents penalties and ensures compliance with SARS.
• Review and Verification: Reviewing forms together ensures all information is accurate and complete before submission.

The IT3(t) form represents a significant change in trust distribution reporting. Staying informed, organized, and proactive helps trustees and beneficiaries navigate these requirements smoothly while avoiding issues with SARS.

For more information, please visit our website anlo.co.za or give us a call on 0116581324