New Zealand’s love affair with trusts does not extend to a love of complying with trustees’ tax obligations. With trusts, there are a number of “do’s” and “don’ts”, and getting it wrong can be costly, especially as trustees are personally liable for the trust’s (and beneficiaries’) tax obligations.
Trustees are generally not familiar with the complexities of how trusts are taxed, such as issues that can arise with debt forgiveness programmes, trust resettlements and the change in the tax residence status of settlors, trustees and beneficiaries. It is up to professional advisers to be proactive and make their clients aware of these issues.
This webinar is intended to help professional advisers know what tax traps to avoid so they can ensure that their clients make best use of their trust structures.
- Learn about trustees’ personal liability for GST and income tax, including trustees’ obligations to withhold tax from distributions
- Understand the difference between trust income and taxable income, and when deemed income can be distributed to beneficiaries
- Know what tax issues arise on distributions, including imputation credit streaming and substitution payments
- Learn how to avoid inadvertently distributing losses and deductions to beneficiaries
- Understand the circumstances in which changes to a trust deed can result in tax losses being forfeited
- Learn that debt forgiveness programmes can give rise to a tax liability when distributions are made to certain beneficiaries or the trust is resettled
- Understand the consequences of the settlors, trustees and beneficiaries changing their tax residence status and how to ensure the trust maintains complying trust status
- Know when particulars about the trust are required to be disclosed to Inland Revenue
Accountants of all levels, tax lawyers, trust lawyers and others who act as trustee of clients’ trusts.
ORIGINAL BROADCAST DATE
6 July 2017
Stephen Tomlinson, Partner, Tomlinson Law