Trusts update July 2023

Over the last few years there have been several changes that alter the landscape for family trusts. These changes include a new Trusts Act 2019, new and comprehensive disclosure requirements that began for the year ended 31 March 2021 and a high profile tax avoidance case (Frucor) which did not involve trusts but which did involve the use of associated entities where all rules were followed by the taxpayer but…  Read more

Using a trust to own shares in a company – Updated August 2023

With the increase in 2021 of the personal tax rate to 39% for anything earned over $180,000, and with rampant inflation now pushing more people’s business incomes over that figure, some people may be looking for ways to change their structure to take advantage of lower tax rates. One of the methods that some people have used in the past is for an individual who owns the shares in a…  Read more

New trust reporting and disclosure requirements

  In 2021, the Taxation (Income Tax Rate and Other Amendments) Act was passed by parliament. One of the changes made in the Act was a new top tax rate for individuals of 39%. Because the trust tax rate is 33%, people will be keen to look at ways they can use their trust to stream income and pay less tax. To combat this, the Act also introduces a significant…  Read more

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