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Revenue Minister Stuart Nash has announced that the Government will move to restrict donation tax credits and gift deductions to cash donations (including payments made by credit card or bank transfer). This announcement follows the Court of Appeal decision in CIR v Roberts that upheld a High Court decision in the same matter and ruled … Continue reading
Pisidia Holdings Limited v Darby relates to an application to lapse notices of claim lodged against the title of seven properties following the end of the relationship between John Darby and Kristen Darby. The land in question was owned as to a 2/5th share by Pisidia Holdings Limited (Pisidia), the shares in which are held … Continue reading
The bright-line test came into force on 1 October 2015. When the legislation was at Bill stage it was signalled that the bright-line test was intended to come into force on 1 October 2015, as was the case. GG & GE Blackburn Trustee Limited (the Trustee) is the trustee of the Blackburn Family Trust (the Trust). On … Continue reading
The bare facts of Chang v Lee can be summarised as follows: Ms Lee purchases a property in Sunnynook Mr Chang (Ms Lee’s uncle) advances Ms Lee $275,000 of the $566,000 purchase price The advance was not a gift The terms of the loan advance were incomplete Mr Chang made the advance to Ms Lee on the … Continue reading
The transfer of a family home to a trust is a relatively routine occurrence. The general order of events is: settle trust execute agreement for sale and purchase carry out any gifting get bank consent register transfer What happens if the last step does not occur? Has the sale in fact been effected? Particularly in … Continue reading
The taxation of trusts is a dynamic and ever-changing landscape. The third edition of Taxation of Trusts published this week (September 2016) has been up-dated to incorporate recent case law developments and legislative amendments. The text also considers the application of FATCA to trusts and proposed new reforms to the disclosure rules and closely … Continue reading
When assets are transferred to a trust by a settlor the transfer is generally by way of gift or sale. Where assets are sold there is a gift back that can be forgiven immediately, progressively or at some future date, if at all. Prior to the abolition of gift duty gifting programs were common and … Continue reading
The Court of Appeal decision in Cowan v Martin highlights the need to clearly identify when parties are acting as trustees or the trustees’ agents. While in this case the agency argument may seem a little contrived, and is available only because of the commonality of capacity and parties, the case remains instructive. The lessons … Continue reading
Buying the family farm can seem a rite of passage. However, given the value of most farms inter-generational assistance can be required so that this can happen. Commonly, this assistance can take the form of an on-demand loan. While not stated, the practical reality is that if the children stay in Mum and Dad’s favour, no demand … Continue reading
Some cases will never settle. Stokes v Insight Legal is one of them. In this most recent trip to the High Court the defendants (Insight Legal et al) have sought leave to appeal the High Court decision Stokes v Insight Legal [2014] NZHC 2475. This decision was largely procedural and related to matters that had … Continue reading
Matters of Trust 