The Biggest Trust Tax Myth: Trusts Don't Save Tax. You, as a Tax Practitioner Do.

Most clients think a family trust automatically saves tax. It doesn't. Without the right trustee resolutions, correct timing and proper planning, a trust can end up paying a flat 45% tax instead. This article explains the three rules every accountant needs to master, the conduit principle, Section 7C and capital gains tax, and shows how a few simple decisions can save clients thousands while keeping them on the right side of SARS.