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Inland revenue has released a Special Report regarding the increased tax rate. The report outlines the new rules for trusts including: References:
With limited exceptions the trustee tax rate has increased to 39% effective 1 April 2024. Note that for deceased estates: For disabled beneficiary trusts: For more information see Trust and estate changes. References: Tax Bill receives assent (ird.govt.nz)
The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill has had its third reading and now awaits assent. One aspect of the increased trustee tax rate will be the application to testamentary trusts that cannot be fully distributed in the permitted time-frame. While many estates are administered efficiently and without tax implications. … Continue reading
The background facts of NZ Trust Corporation Ltd v Bonnard Lawson Geneve SA & Ors are set out by Associate Judge Gardiner at [1] to [4] as follows: The issues for the Court to determined can be summarised as whether: The following time-line sets out key events that have lead to the proceedings before the … Continue reading
The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill (the Bill) has been amended by the inclusion of: As noted in the commentary to the Bill: References:
In New Zealand Beddoe applications are governed in the first instance by the High Court Rules, which do not extend to prospective costs orders by beneficiaries. Representation of VG Trustee Limited re the B Trust (Re the B Trust) considers whether beneficiaries should have their costs met on account of a successful Beddoe application brought … Continue reading
The Supreme Court has denied leave to appeal the Court of Appeal decision in McLaughlin v McLaughlin, which relates to a long-standing challenge regarding the trusteeship of a family trust and allegations of breaches of trust brought by brothers of one of the trustees. The original causes of action were: John McLaughlin retired before the conclusion … Continue reading
Worksafe New Zealand MHI Haumaru Aotearoa v RH & Jury Trust & Ors (Worksafe v Jury) relates to a tragic and fatal accident where a young child visiting his grandfather at work on a dairy farm died after his jacket was caught in an exposed rotating shaft. As noted at [4]: Fundamentally, Worksafe v Jury … Continue reading
Inland Revenue has issued a General Article (GA 24/01) providing guidance regarding how Inland Revenue might perceive certain transactions and structure changes. In GA 24/01 Inland Revenue provides high level guidance regarding specific transactions and structural changes that are unlikely to be considered tax avoidance (without artificial or contrived features) such as distributions of income … Continue reading
Interpretation Statement IS 24/01, which updates and replaces IS 18/01 explains the taxation of trust under the trust rules in the New Zealand Income Tax Act 2007. The statement provides guidance on matters including: IS 24/01 does not address the change to the trustee tax rate from the current 33% to 39% that has been … Continue reading
Matters of Trust 