Trusts – do they have a future

The new regulation to curb tax avoidance in trusts came into effect on 1 March 2017 by way of section 7C of the income tax act.  This could have a significant effect on the pockets of connected persons or companies to a trust where an interest free or low interest loan or credit has been advanced to the trust.

In this month’s BAN Bulletin, Monique Sharland, CEO of Business Accounting Network, unpacks who are affected by this new legislation, the exemptions, the nature of the tax to be imposed and examples of how to calculate the tax liability so that you are well prepared for the financial consequences on 28 February 2018 when the tax becomes payable, as well as possible restructuring solutions.

Click here to read our article – Trusts – do they have a future