Articles by The Professional Trustee Team
Filing tax returns for trusts is becoming more complicated, and trustees need to be aware of this.
From the 2022 financial year onwards (i.e. year ending 31 March 2022), additional information must be included in a trust’s tax returns. None of this is particularly difficult, but gathering the information the IRD requires is going to be more time consuming than it has been in the past, especially if the trust has been involved in multiple transactions during the year.
Information the IRD requires
The main exception to these rules is if the trust is non-active (i.e. derives no income and has no deductions). A typical example would be a trust that just owns a family home. To qualify, the trust must have filed a non-active declaration with IRD.
Foreign trusts are the other exception because they already provide this information in their annual foreign trust returns.
With the extra information now required, it is likely preparing trust tax returns will take more time and effort than many trustees have been used to. Talk to your accountant about what is involved. And if you don’t already have an accountant for your trust, contact us at GRA to see how we can help you.
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