Effective 2022 financial year and onwards new financial reporting and disclosure rules apply to all income producing trusts. The new disclosure rules are contained in s 59BA of Tax Administration Act 1994. The purpose of these disclosure rules is to provide the Commissioner with an understanding of how Trusts are used and to assess the compliance with the 39% top marginal tax rate and possible tax avoidance. Foreign Trusts are excluded from these rules as they are subject to their own special set of disclosure rules. Non-Active, Charitable, Maori and Special Purpose Vehicle Trusts are also excluded from these rules.
The Trustees of all trusts must prepare and provide
The financial statements must:
For individuals who fall within any of the above categories, the trustees will need to provide their full name, date of birth, the country of tax residency and their tax identification number.
All trustees and their advisors need to be mindful of these new rules when preparing 2022 financial statements and income tax returns.
If you have any questions or would like to know more, please do not hesitate to ask any of us.
Your Team at Roberts & Associates Ltd
Phone: 09-9661370
e-mail: reception@robertsandassociates.co.nz