Feedback sought on reporting requirements for domestic trusts
From the 2021–22 income year there are new disclosure rules for domestic trusts – trustees will have to prepare financial statements and provide extra information with their income tax returns.
An Order in Council is required to set the minimum requirements for the financial statements. Tax policy officials are seeking feedback on these requirements, which are set out in an officials' issues paper, Reporting requirements for domestic trusts. The closing date for submissions on the proposed minimum requirements is 15 November 2021.
Inland Revenue has also released a draft operational statement, ED0235: Reporting requirements for domestic trusts, setting out its proposed approach to applying the trust information-gathering powers contained in sections 59BA and 59BAB of the Tax Administration Act 1994. The closing date for submissions on the draft operational statement is 30 November 2021.