Description

Lawyers and accountants have been reviewing their clients’ trust structures in the light of the Trusts Act 2019, the new domestic trust reporting rules, and recent case law developments to ensure they are still “fit for purpose”. This review often results in trusts being varied or resettled.

This webinar examines the income tax and GST implications arising from trust resettlements. Income tax issues include knowing when a “taxable event” arises for income tax purposes and identifying the income tax implications arising from the transfer of different types of assets. Inland Revenue has indicated that rollover relief from the bright-line test will be extended to trust resettlements. GST issues include determining when a resettlement can be zero-rated for GST purposes and whether is it possible to claim a second-hand goods credit.

This highly practical webinar includes a case study to illustrate the practical application of these and other tax issues, and also helpful tips on how to structure resettlements to maximise tax effectiveness and avoid tax pitfalls.

ORIGINAL BROADCAST DATE

8 September 2022

LEARNING OUTCOMES

You will:

• Learn whether a resettlement will always give rise to tax implications
• Know how to structure resettlements to maximise tax effectiveness and avoid tax pitfalls
• Understand the income tax implications arising from the resettlement of land, including the application of the 10-year sale rules and the bright-line test (including proposed rollover relief to trust resettlements)
• Know the income tax implications arising from the resettlement of company shares, including shares in look-through companies
• Learn about the income tax implications arising from the resettlement of other assets, including depreciable property, trading stock and financial arrangements
• Understand other tax implications arising from resettlements, including the effect on tax losses and tax relief available for relationship property transfers
• Know the GST implications arising from resettlements, including the application of the zero-rating rules and issues arising with second-hand goods credits

SUITED TO

Accountants of all levels, tax lawyers, trust lawyers and others who act as trustee of clients’ trusts.

PRESENTERS

Stephen Tomlinson, Principal, Tomlinson Law.

Katherine Ewer, Principal, Katherine Ewer - Tax and Trust Consultant.