As part of the Taxation (Annual Rates for 2023 – 24 Multinational Tax and Remedial Matters) Bill, the trust tax rate will increase from 33% to 39% from 1 April 2024. The new tax rate may be cause for concern for individuals with assets held through trusts, as even those not considered high-income earners may end up with their trust paying tax at a high rate of 39%. Inland Revenue… Read more
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
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
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