Overview

Taxation of trusts in South Africa is undergoing unprecedented regulatory and enforcement scrutiny. With SARS intensifying its data-matching capabilities through mandatory IT3(t) third-party reporting and enforcing administrative penalties for non-compliant ITR12T filings, trustees, estate practitioners and legal advisors can no longer rely on informal distribution practices or delayed accounting records. Furthermore, SARS's assertive stance on Section 7C interest-free loans and section 7 attribution rules means that unexamined trust structures create significant tax and legal exposure for donors, founders and beneficiaries alike.

Understanding the interaction between the conduit principle (Section 25B), vesting vs discretionary provisions in trust deeds, capital gains tax (Eighth Schedule) and donations tax is essential for any legal professional advising trust clients or managing fiduciary responsibilities. Incorrect timing of distributions or misapplying attribution rules can trigger unintended tax liabilities, double taxation or severe non-compliance penalties for trustees.

Join Adv Christel van Wyk on 17 November 2026 from 10h00 to 12h00 for the Taxation of Trusts: Legal & Practical Aspects webinar. This practical session unpacks the legal and statutory framework governing trust taxation under the Income Tax Act 58 of 1962. You will gain actionable guidance on calculating trust taxable income, navigating Section 7C and attribution rules, managing IT3(t) reporting compliance and defending client trust structures against SARS audits.

Learning objectives

Attending this webinar will equip you with the following skills: 

• Understand the legal framework governing the taxation of trusts in South Africa, including key provisions of the Income Tax Act 58 of 1962.
• Distinguish between the taxation of trust income in the hands of the trust, founder and beneficiaries using the conduit principle and attribution rules.
• Apply the tax rules governing income distributions, Section 7C low-interest loans and donations tax thresholds.
• Determine capital gains tax (CGT) consequences for trusts under the Eighth Schedule, including the attribution and vesting of capital gains.
• Manage trustee tax compliance obligations, execute accurate IT3(t) declarations and mitigate SARS audit risks.

Content

The webinar will cover the following topics: 

• Legal Framework for the Taxation of Trusts
  • Definition, characteristics and tax classification of trusts.
  • Roles and fiduciary/tax responsibilities of trustees, founders and beneficiaries.
  • Core provisions of the Income Tax Act 58 of 1962 affecting trust property.
  • Interpreting trust deeds: vesting vs discretionary trust mechanics.
• Income Tax Treatment of Trusts
  • Tax residency, status and applicable flat tax rates for trusts.
  • Determining taxable income retained in a trust versus vested in beneficiaries.
  • Practical application of the conduit-pipe principle (Section 25B).
  • Timing, legal requirements and resolution formalities for vesting income.
• Attribution Rules and Anti-Avoidance Provisions
  • Attribution of income under sections 7(2) to 7(8) of the Income Tax Act.
  • Section 7C: Donations tax implications of interest-free and low-interest loans to trusts.
  • SARS Draft Interpretation Notes on Section 7C and unpaid trust distributions.
  • Interaction between attribution rules, donations tax and beneficiary vesting.
• Capital Gains Tax (CGT) and Trusts
  • Applying Eighth Schedule provisions to trust asset disposals.
  • Calculating capital gains realised by trusts and inclusion rates.
  • Attribution and flow-through of capital gains to founders and beneficiaries.
  • Tax consequences of asset transfers, donations and capital distributions.
• Donations Tax and Estate Planning
  • Donations tax implications and annual exemption thresholds for transfers to trusts.
  • Structuring loans versus donations in trust funding and estate planning.
  • Estate duty considerations, Section 7C deemed donations and succession strategy.
• Tax Compliance, Administration and SARS Enforcement
  • SARS registration, ITR12T returns and IT3(t) third-party reporting deadlines.
  • Record-keeping, financial reporting and resolution documentation standards.
  • Navigating SARS verifications, trust audits and administrative non-compliance penalties.
  • Common trustee compliance errors and practical risk mitigation strategies.
• Practical Case Studies and Application
  • Step-by-step trust taxable income and CGT calculation scenarios.
  • Evaluating Section 7C deemed donations and Section 7 attribution triggers.
  • Drafting compliant distribution resolutions and managing client advisory workflows.

About the presenter

Adv Christel van Wyk

Christel van Wyk is a General Tax Practitioner (SA) and a practicing Advocate in the Northern Cape, registered with The South African Institute of Taxation. With over 25 years of experience in both legal and tax fields, her expertise spans corporate international tax, tax avoidance, dispute resolution and policy work. She has held key positions in both the private and public sectors, serving as a legal advisor to an international bank and a property company and later leading significant roles at SARS, EY, SAICA and the Office of the Tax Ombud. 

Christel's broad experience includes legislative submissions, tax dispute strategy and heading various tax-related divisions. In 2023, she founded her own tax and legal practice. Academically, she holds a BA Law degree from the University of Stellenbosch, an LLB from UNISA, a Diploma in Taxation from the University of Johannesburg and a Certificate in Mediation and Arbitration. 

Who should attend?

The following persons will benefit from attending this webinar: 

• Advocates
• Attorneys
• Corporate Legal Professionals
• Legal academisc
• Candidate attorneys
• Law students
• Paralegals

Price

• R 450.00 - Online admission - Individual
• Group Price 1 - From R337 per person (up to 5 users)   
• Group Price 2 - From R260 per person (up to 10 users)   
• Group Price 3 - From R224 per person (over 11 users)  

Steps to register for the event:

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Click here  to find out about the Technical Resource Centre & CPD Subscription options. 

Additional material

By attending this webinar you will be provided with: 

• A summarised slide presentation. 
• Reference documents and/ or course material where available. 
• You can ask questions during the webinar and you will also have access to the presenter after the webinar. 

About SA Legal Academy

Welcome to SA Legal Academy (SALA), a provider of courses to help you succeed in your chosen career. We are committed to providing our students with the highest quality training and support, to ensure that your skills and knowledge are up to date and ready to face the challenges of the modern workplace. Our courses are designed to ensure that you reach your professional goals and enhance your career prospects. With our experienced training staff and comprehensive resources, you can be confident that you will receive the highest quality of training from SA Legal Academy. 

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