Post-implementation review of trust disclosure

Inland Revenue has releaed a post-implementation review of the increased disclosure requirements that were introduced in December 2020 with application from the 2021–22 and later income years.

See Trust disclosures post-implementation review

Inland Revenue’s post-implementation recomendation is to retain the disclosure regime with changes to:

• reduce the number of subjective tests in the rules
• remove unnecessary disclosure
• improve the guidance provided.

The report is accompanied by the 2023 trust disclosure data and an independent review of the disclosure rules. The independent review, which was carried out by Cantin Consulting supports the retention of the disclosure rules (noting that these are not well supported by taxpayers and advisers) but recommends:

• modifications to reduce compliance costs, and
• continued review to ensure fitness for purpose.