The IRD have finalised its operational statement on the new reporting requirements for domestic trusts. From the 2021-22 income year, New Zealand trusts must:
- File an Income Tax Return
- Comply with additional disclosures (as set out in s 59BA of the Tax Administration Act 1994)
- Prepare Financial Statements - A Statement of Profit or Loss & a Statement of Financial Position
Non-active complying trusts with no income are exempt from these 3 requirements as well as trusts with income of $200 or less.
The additional disclosures required for trusts in the IR6 are:
- The amount and nature of all settlements made to the trust in the income year (excluding minor services incidental to the activities of the trust provided at less than market value)
- The name, date of birth, jurisdiction of tax residence, and tax file number/taxpayer identification number of all settlors who have made a settlement on the trust in the income year, or settlors whose details have not previously been supplied to Inland Revenue
- The amount and nature of all distributions made by trustees of the trust in the income year, excluding minor, non-monetary distributions that are incidental to the activities of the trust.
- The name, date of birth, jurisdiction of tax residence, and tax file number/taxpayer identification number, of all beneficiaries receiving such a distribution
- The name, date of birth, jurisdiction of tax residence, and tax file number/taxpayer identification number, of each person having a power of appointment under the trust deed (including the power to appoint or dismiss a trustee, add or remove a beneficiary, or amend the trust deed).
We will be requesting the above information when preparing the 2022 Financial Statements, unless we have this information already. If you have any questions please contact our office.
The Team from Cleland Hancox Limited
Hamilton: 07 838 2692 Morrinsville: 07 902 2004