Employer Interim Reconciliation submission 20235 October 2022
2023 Tax Filing Season20 June 2023
South Africa has been grey-listed by the Financial Action Task Force for not fully complying with international standards around the prevention of money laundering and combatting the financing of terrorism and proliferation.
One of the Acts passed by Parliament last year is the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act of 2022, this Act amends several existing Acts of Parliament including the Trust Property Control Act 57 of 1988 and the Companies Act, Act 71 of 2008.
The new Act requires Trustees to keep a register of the Beneficial Ownership of a Trust. Failure to comply with the prescribed obligations is a criminal offence and on conviction relevant parties can be liable to a fine not exceeding R10 million, or imprisonment not exceeding five years, or both.
What is a Beneficial Owner – As per the definition in the Trust Property Control Act:
What is legally required of the Trustees:
Access to the information regarding Beneficial Ownership:
In terms of the Regulations, access to such information is restricted to various government bodies. The South African Revenue Service (SARS) will now pick up on Trusts that were never registered for tax and that have never filed tax returns. Failing to register for income tax is a criminal offence and has serious implications in terms of admin penalties. The said admin penalties can vary between R250.00 – R16 000.00 per month on non-compliance.
The Trust Property Control Act requires trustees to adhere to their administrative responsibilities in managing the trust on an ongoing basis.
Trusts that are not registered with the South African Revenue Service (SARS) including Trusts that are dormant, not actively trading or that do not have a bank account, must get their affairs in order.
Trust administration and services:
C2M Trust Management Services (Pty) Ltd will assist our clients in capturing the Beneficial Ownership of the Trust on the Master’s Office portal, at a cost of R1 250.00 (excluding VAT) per Trust.
A response is required to indicate whether or not you will be making use of our services. Kindly contact us on firstname.lastname@example.org.
COMPANIES, CLOSE CORPORATIONS AND INCORPORATED
Companies and Intellectual Property Commission is currently planning to establish and implement a Beneficial Ownership register, to be released upon the approval of the Regulations, pursuant to the commencement of the General Laws Amendment Act of 2022.
A Beneficial Owner in respect of a Company is and individual who, directly or indirectly, ultimately owns that company by:
In preparation for the implementation of the said changes relative to entities other than Trust, we are preparing information accordingly and will advise once published.
Queries relative to Companies, Close Corporations and Incorporated can be directed to email@example.com.
C2M Chartered Accountants Incorporated is an accountable institution in terms of the Financial Intelligence Centre Act and therefore are also obliged to comply with the requirements set out in the Act.
We respectfully request all Trustees/Directors’ co-operation to meet the legal obligations bestowed upon them.