Trusts – Tax Risks, SARS Audits and Beneficiary Compliance  – In his 2012 Budget Speech the Minister of Finance revealed that from information disclosed in the voluntary is closure programme areas where taxpayers failed to disclose information, failed to document Trust transactions correctly and timeously and underpaid their taxes were revealed. As a result the Minister warned of a renewed focus on the taxation of high net worth individuals and the use of Trusts in general. SARS too have indicated an intention to increase the auditing of Trusts and Trust beneficiaries in the 2013 year of assessment.

Course content:

In this seminar we will inter alia address the following topics as they commonly arise in practice in respect of Trusts.
    
    Topics will include:

   Trust Deeds

    *    Requirements for a valid trust deed and the separation of control.
    *    Creation of annuity income.
    *    Vesting of rights.
    *    Right of revocation and estate duty.
    *    Trustees and importance of timeous and valid Trustee resolutions.

    Trust Income

    *    Donors and deemed accruals.
    *    Taxation of beneficiaries.
    *    Waiver of loans to a trust and donations tax.
    *    Distribution of dividends by a trust and loss of dividend exemption.
    *    Creation and use of beneficiary loan accounts.
    *    Apportionment of expenses incurred by the Trust and distributable Trust income.

    CGT
    *    Attribution rules.
    *    Capital losses.
    *    Increased CGT inclusion rate and the minimisation of taxation of gains in the Trust.

    Offshore Trusts

    *    Taxation of Trust founder and deemed accruals.
    *    Taxation of non-resident trust income and capital.
    *    Taxation of resident beneficiaries.
    *    Taxation of non-resident beneficiaries.
    *    Exchange control issues.

    General

    *    Dividend tax: resident and non-resident trusts.
    *    Use of Trading Trusts.
    *    Trusts and estate planning.

Who should attend

Persons involved in financial advisory services, estate planning and real estate, Tax specialists, Practicing accountants and lawyers, In-house tax managers and advisors, Financial directors and managers and business owners, Trustees and Trust beneficiaries, Property developers.
    
    
About the presenter 

The presenter is an admitted attorney with a Masters degree in taxation and has been involved in tax for over 10 years. The presenter is currently the National Head of Tax training and Presentations with Mazars and in this capacity provides tax training to Mazars partners, staff and clients on a national basis. The presenter also consults on Income Tax matters including, Corporate, Individual and International tax as well as VAT.
    
The presenter presents tax seminars on a national basis, focusing on general as well as specialised tax topics. The presenter still lectures part time for the National School of Accounting to assist up and coming CA’s with passing the UNISA CTA (Hons) programme.

The presenter started her tax career as a full time academic with the University of KwaZulu-Natal before moving into practice. She has presented numerous tax seminars with great success to attendees ranging from JSE Corporate advisers to smaller tax practitioners and is a popular lecturer amongst her students. Her primary focus in any presentation is that attendees find the material relevant and presented in an understandable and accessible manner.

Surviving a VAT Audit

Including the new IT 14SD Reconciliations

VAT vendors are facing increased scrutiny from SARS. Vendors may be required to supply proof of valid documentation substantiating output VAT declared and input VAT claimed for a period extending back five years. Output VAT arising from deemed supplies is commonly incorrectly accounted for by vendors, and input VAT incorrectly apportioned or
claimed.   
    
This kind of seminar should address specifically many of the areas most commonly audited and the documentary requirements vendors are required to meet. We will also address the most recent amendments to the VAT Act.

Vat issues to be looked at:

    *    VAT recon in terms of IT14SD
    *    Imports and exports
    *    Indemnity receipts
    *    Bad debts and bad debts recovered
    *    Creditors outstanding for more than 12 months
    *    Sale of fixed assets
    *    VAT and fringe benefits
    *    VAT and income tax deductions
    *    Supplies between “connected persons
    *    Separate operating divisions
    *    Valid tax invoices: output and input VAT
    *    Apportionment of input VAT due to financial services and other exempt supplies
    *    Change of use adjustments
    *    Denial of input VAT: entertainment and “motor cars” (including rental vehicles)
    *    Amendment to the claiming of notional input VAT and the purchase of fixed property
    *    VAT relief for residential property developers
    *    Business owners (incl partners in a partnership) and directors
    *    Compliance persons responsible for overall risk management within the enterprise
    *    All persons responsible for issuing invoices for either the goods or services of the enterprise, and submission of VAT returns
    *    Managers responsible for the indirect tax function
    *    Junior and senior tax consultants from legal and audit firms requiring a refresher

Financial advisory services, estate planning and real estate, Tax specialists, Practicing accountants and lawyers, In-house tax managers and advisors, Financial directors and managers and business owners, Trustees and Trust beneficiaries, Property developers.