Taxation (Income Tax Rate and Other Amendments) Bill

  • enacted
35 New sections 59BA and 59BAB inserted

(1)

After section 59, insert:

59BA Annual return for trusts

(1)

A trustee of a trust must file a return for a tax year of all income derived in the corresponding income year by the trustee as trustee of the trust, together with the other information required under this section.

(2)

A return of income and the information required under this section for a trustee and a tax year must be in the form prescribed by the Commissioner and include—

(a)

a statement of profit or loss and a statement of financial position:

(b)

the amount, and nature, of each settlement that—

(i)

is not the provision to the trustee, at less than market value, of minor services incidental to the activities of the trust; and

(ii)

is made on the trust in the income year:

(c)

the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of each settlor who makes a settlement on the trust in the income year or whose details have not previously been supplied to the Commissioner:

(d)

for each distribution made by the trustee of the trust in the income year,—

(i)

the amount of the distribution:

(ii)

the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of the beneficiary who receives the distribution:

(e)

the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of each person having a power under the trust to appoint or dismiss a trustee, to add or remove a beneficiary, or to amend the trust deed:

(f)

the other information required by the Commissioner.

(3)

A trustee of a trust is not required to file a return or provide information under subsection (1) if—

(a)

the trustee is excluded from the requirement to make a return by section 43B (which relates to non-active trusts):

(b)

the trustee is required to make a return by section 59D (which relates to foreign trusts):

(c)

the trustees of the trust are incorporated as a board under the Charitable Trusts Act 1957:

(d)

the trustee is eligible under section HF 2 of the Income Tax Act 2007 to choose under section HF 11 of that Act to become a Maori authority.

(4)

If the trustee of a trust is a non-resident, a settlor of the trust who is a New Zealand resident is responsible for ensuring the performance of the obligations imposed on the trustee by this section.

59BAB Commissioner may require trust information for period after 2013–14 income year

(1)

The Commissioner may require a trustee of a trust to provide, in the prescribed form and by the specified date, information that—

(a)

relates to the trust and a period beginning after the end of the 2013–14 income year and ending before the beginning of the 2021–22 income year; and

(b)

would be required to be provided under section 59BA if the period began after the end of the 2020–21 income year; and

(c)

is in the knowledge, possession, or control of the trustee.

(2)

The Commissioner may issue a notice requiring the trustee of each trust having the characteristics specified in the notice to provide, in the prescribed form and by the specified date, information—

(a)

that is described in subsection (1) and is specified in the notice; and

(b)

is for each period that is specified in the notice and begins after the end of the 2013–14 income year and ends before the beginning of the 2021–22 income year.

(3)

If the trustee of a trust is a non-resident, a settlor of the trust who is a New Zealand resident is responsible for ensuring the performance of the obligations imposed on the trustee by this section.

(4)

A notice under subsection (2) is secondary legislation under the Legislation Act 2019.

(2)

Subsection (1) applies for the 2021–22 and later income years.