One of the services that we offer to our clients is to act as an independent trustee in their trusts. This is a very important appointment and independent trustees must fully understand and accept their fiduciary duty in this regard. The benefit of appointing a trusted business professional is that there usually already exists a relationship of trust built up over a period of time. In addition to this, the person acting as the independent trustee will have the in-depth knowledge of their client’s business and private environment in which the trust is generally structured. Unfortunately, due to the extent of risk and administrative burden taken on by the independent trustee, the costs of appointing such trustees are increasing. The Chief Master recently issued a directive on various matters when dealing with trusts. In this directive, the requirements for the independent trustee are clearly set out. Please read our article in this regard, and in fact the entire directive if you are involved in trusts in any capacity. We will also be communicating with our clients in this regard shortly.
Our second article in this newsletter is a very interesting one on the deduction of interest expenses against interest received, based on the way SARS allowed the application of Practice Note 31 in the past. The judgment delivered in a recent court case however changes things.
We hope that you find our newsletters interesting and informative. As always, if you want to respond to or comment on any of our news items or other relevant information, please contact us at email@example.com or 022 – 482 1169, or join the conversation on our social media platforms on Linkedin and Facebook.
Warm regards until next month.