Trust Disclosure Rules - What you need to know
May 1, 2022
Previously, it has been sufficient for trusts to file returns declaring taxable income including distributions to beneficiaries that are subject to NZ tax, without filing standard financial statements.
On 1 April 2021 new disclosure rules came into effect for trusts, in an effort by Inland Revenue to get better visibility over whether certain transactions were taxable. These disclosure rules include:
Along with a higher tax rate, these additional disclosure requirements will increase the compliance costs making trusts less appealing for individuals as a means of asset planning and protection.
Please contact your business partner if you would like to discuss these increased costs.