Tax Traps for Trusts 2021 - 3 June 2021 (On Demand)
The enactment of the Trusts Act 2019 and the new trust disclosure rules in the Tax Administration Act 1994 have resulted in advisers reviewing their clients’ trust structures to ensure they are still “fit for purpose”. This review has often result in distributions being made, debts being forgiven, trust property being transferred to other structures, and trusts being varied, resettled or wound up. These changes will often give rise to tax consequences. It is critical that advisers ensure that their clients are aware of these tax implications and take steps to mitigate them.
ORIGINAL BROADCAST DATE
3 June 2021
- Learn about trustees’ personal liability for GST and income tax
- Understand the issues arising under the bright-line test, including the implications arising from nominations, changes in trustees, the resettlement of residential property, and the application of the main home exclusion
- Know what tax issues arise on distributions, including the distribution of “deemed income”, imputation credit streaming and substitution payments
- Learn about the GST and income tax implications arising on varying the terms of a trust and trust resettlements
- Understand that debt forgiveness programmes can give rise to a tax liability if distributions are made to certain beneficiaries or the trust is resettled
- Know when particulars about the trust are required to be disclosed to Inland Revenue and what needs to be disclosed
Accountants of all levels, tax lawyers, trust lawyers and others who act as trustee of clients’ trusts.
Stephen Tomlinson, Principal, Tomlinson Law
1.5 CPD Hours
On Demand Event
Complete online in your own time (Self-paced)