The three compliance pillars
Three pillars keep the structure standing: how the trustees conduct themselves, the transparency registers the law now requires, and the returns SARS expects. Company-law housekeeping sits alongside them.
Pillar 1 — trustee conduct
Trustees must act with real care and independence. The standard is set by statute and cannot be contracted away:
(1) A trustee shall in the performance of his duties and the exercise of his powers act with the care, diligence and skill which can reasonably be expected of a person who manages the affairs of another. (2) Any provision contained in a trust instrument shall be void in so far as it would have the effect of exempting a trustee from or indemnifying him against liability for breach of trust where he fails to show the degree of care, diligence and skill as required in subsection (1).
The practical lesson — appoint at least one genuinely independent trustee, hold real meetings, and minute real decisions — is covered in trustees’ duties.
Pillar 2 — transparency registers
Since South Africa’s anti-money-laundering reforms, both the trust and the company must keep registers of who really stands behind them — two separate filings with two different regulators: the trust register at the Master (TPCA s 11A) and the company register at CIPC. Read the detail on beneficial-ownership registers.
Pillar 3 — SARS reporting
SARS now receives detailed third-party data on trusts. A resident trust files an annual IT3(t) reporting every amount it vested in a beneficiary, plus its income tax return (ITR12T), and SARS matches the two. The rights conferred on beneficiaries — vested versus discretionary — drive the treatment. See SARS trust reporting.
The annual compliance cycle
- Hold genuine trustee meetings and minute real decisions; keep the trust bank account separate.
- Before any company distribution, apply and minute the solvency and liquidity test (Companies Act s 4).
- File the trust’s ITR12T and the IT3(t) by the SARS deadline; lodge any donations-tax returns.
- Keep the trust’s beneficial-ownership register (Master) and the company’s (CIPC) current.
- Review the structure yearly — the official rate of interest, the donations-tax exemption, beneficiary residency, and any change in the section 7C interpretation note.
For the full build-and-run sequence, see the implementation checklist.
The compliance guides
Stay compliant
Compliance & governance
5 guidesTrust & Company Compliance· hub
The governance and transparency obligations that keep a structure standing.
Read guideBeneficial-Ownership Registers
Two filings: the trust register at the Master (TPCA s 11A) and the company register at CIPC.
Read guideSARS Trust Reporting
The annual IT3(t) and ITR12T returns, and how SARS matches them.
Read guideCompany-Law Housekeeping
Solvency & liquidity, financial assistance (ss 44/45) and director conflicts (s 75).
Read guideImplementation Checklist
A practical, ordered sequence for building the structure correctly.
Read guide
Frequently asked questions
The trust keeps its beneficial-ownership register current, files its IT3(t) and ITR12T, and runs as a genuine trust. The company keeps its CIPC filing current, passes the solvency and liquidity test before distributing, and keeps its records.
Because if the founder keeps real control, a court may treat the trust as the founder’s alter ego and disregard it — undoing the asset protection and the tax planning. Appoint an independent trustee and minute real decisions. See trustees’ duties.
Up to R10 million or five years’ imprisonment under the Trust Property Control Act; and a company cannot file its annual return without its CIPC beneficial-ownership filing. See beneficial-ownership registers.