OPINION: Why Sars targets ‘connected persons’ in relation to a trust

OPINION: Why Sars targets ‘connected persons’ in relation to a trust

The SA Revenue Service (Sars) attempts to limit the abuse of trusts as a means of tax evasion by individuals. Sars identifies persons and entities that are closely connected to the beneficiaries of the trust – especially where income and capital gains have been transferred to such persons and entities – since the beneficiaries are the parties who will directly benefit from all income and capital gains accrued in the trust.