Who are Connected Persons in relation to a trust?
The net has been cast wide and far on the matter of Connected Persons.
Connected Persons in relation to a Trust are set out as:
- Any beneficiary of a trust.
- Any connected person in relation to such beneficiary, in other words:
- If the beneficiary is a natural person, then any relative (by blood or marriage) will also be connected to the trust, as well as any trust of which such natural person or such relative is a beneficiary
- Persons who are connected persons in relation to a trust are connected persons in relation to each other, thereby widening the net in terms of the definition of the term “connected persons”
- If the trust owns 20% or more of a company, all the beneficiaries of the trust will be connected to that company
- If the beneficiary is a company, then any other company which is held more than 50% by such beneficiary company
For more comprehensive information contained in SARS Interpretation Note No 67 dated 1 November 2012 visit – https://juta.co.za/law/media/filestore/2012/11/1_IN_67.pdf