New reporting obligations for domestic trusts were introduced by the Taxation (Income Tax Rate and Other Amendments) Act 2020 that will require more disclosure to Inland Revenue. However, an Order in Council is required to set the minimum requirements for this disclosure.
Tax policy officials are now seeking feedback on these requirements, which are set out in an officials’ issues paper, Reporting requirements for domestic trusts. The closing date for submissions on the proposed minimum requirements is 15 November 2021. Inland Revenue has also released a draft operational statement, ED0235: Reporting requirements for domestic trusts, setting out its proposed approach to applying the trust information-gathering powers contained in sections 59BA and 59BAB of the Tax Administration Act 1994. The closing date for submissions on the draft operational statement is 30 November 2021.