The Davis Tax Committee’s (DTC) first interim report was released in July 2015 (the First Report) and made various significant recommendations to the Minister of Finance regarding (among other topics) the taxation of trusts in South Africa. Taxand South Africa provides an update on the recent developments concerning this matter.
Subsequent to the release of the First Report, various stakeholders and members of the public submitted comments to National Treasury to express their concerns in relation to the far-reaching consequences that may arise, particularly in relation to the taxation of trusts, should the recommendations of the First Report be legislated.
On 24 August 2016, the DTC released its second interim report on estate duty (the Second Report), which submits revised proposals to the Minister of Finance as relates to, inter alia, the taxation of trusts.
Two of the most notable proposals contained in the First Report were:
the First Report further stated as follows:
The Standing Committee on Finance is scheduled to hear submissions regarding various tax proposals including the proposed section 7C in September 2016.