Most New Zealand trusts must now:

• file an income tax return;
• comply with additional disclosures; and
• prepare financial statements.

Non-active trusts with no income are exempt from these three requirements. Non-active trusts with income of $200 or less in interest income are also exempt, provided they complete a ‘Non-active Trust’ declaration form and submit this to the IRD.

Additional tax return disclosures

There are also five new disclosures we must make when filing a trust tax return. The additional disclosures required for trusts tax returns are:



• the amount and nature of all settlements made to the trust in the income year (excluding minor services incidental to the activities of the trust provided at less than market value).
• the name, date of birth and IRD number of all settlors who have made a settlement on the trust in the income year, or settlors whose details have not previously been supplied to Inland Revenue (which for the 2022 tax return will be all settlors).
• the amount and nature of all distributions made by trustees of the trust in the income year (excluding minor, non-monetary distributions that are incidental to the activities of the trust).
• the name, date of birth and IRD number, of all beneficiaries receiving such a distribution.
• the name, date of birth and IRD number, of each person having a power of appointment under the trust deed (including the power to appoint or dismiss a trustee, add or remove a beneficiary, or amend the trust deed).

While we have most of this information already on file, there will be times that we will need to contact you for further information.

Financial statements

In addition to the filing and the disclosures set out above, from 31 March 2022 most trusts will also have to prepare financial statements. Unless a trust is a non-active complying trust with no income or income of $200 or less in interest, it will have to prepare financial statements. While these financial statements are not filed with the IRD, they must be available if Inland Revenue requests to see them.

If you have a family trust that your client manager is not aware of, please contact us to discuss this and to work out your filing requirements.