This tag is associated with 6 posts

Blood from a stone

It’s a tricky road being a beneficiary.  All these rights – but how to enforce them?  What if you are a beneficiary, or you might be – and you want to see the documents that as a beneficiary, you have a right to?  How can you compel the trustees to confirm whether you are a beneficiary?  The … Continue reading

The Trust Illusion

The recent High Court decision in Clayton v Clayton has been appealed and cross-appealed.  Leave has also been given for certain appeals to be made out of time. The appeal will be heard on 14 July 2014.  In the meantime, Mrs Clayton has served a bankruptcy notice on her former husband in respect of costs … Continue reading

Can the end determine the means?

A recent High Court decision found that the Family Court does not have the jurisdiction to consider an application under s 182 of the Family Proceedings Act if the order dissolving the parties’ marriage was not made in New Zealand.  See Jurisdiction, Divorce and Trusts. s. 182 Section 182 of Family Proceedings Act 1980 enables the Court … Continue reading

Safe Harbour from Penny and Hooper needs to be navigated with care

On 31 August 2011, Inland Revenue issued Revenue Alert RA 11/02.  This Revenue Alert sets out the Commissioner’s views in response to the decision in Penny and Hooper as to when diverting personal services income through an associated entity such as a trust will constitute tax avoidance. Key provisions The main points of the Revenue Alert can be … Continue reading

Unsuccessful claim of constructive trust on account of work carried out

The recent case of Three Chicks  v NZ Building Projects raises the novel question – can a remedial constructive trust be claimed in respect of work carried out under a contract? By way of background Three Chicks, the owner of a property, assigned a building contract to NZ Building Projects. Following the completion of the … Continue reading

Extent of professional trustee liablity

The New Zealand Institute of Chartered Accountants (NZICA) is warning professionals that the Inland Revenue Department (IRD) is actively pursuing trustees personally for tax debts owed by a trust, including those trustees with no personal connection or interest in the income or assets of the trust. NZICA says it is aware of a number of … Continue reading