Increased Disclosure Requirements for Trusts

Following increases to the top personal tax rate, trusts will be required to provide more information on their annual returns for the 2021-2022 income year onwards, including distributions and settlements made in the income year, profit and loss statements and balance sheets.

This is to provide Inland Revenue with a clear picture of how the trust is being used and whether the usage changes as a result of the personal income tax rate change.

The Commissioner can also request the information from trusts for prior years back to the 2013-2014 tax year as appropriate, to allow for comparable information to be gathered.

The increased disclosure requirements do not apply to non-active trusts, charitable trusts and trusts eligible to be Māori authorities.