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HC 1: What this subpart does
or “This subpart explains how taxes work for trusts and outlines key rules and definitions”
You could also call this:

“Joint trustees must calculate trust income and report it together”

When two or more people earn money together as trustees of a trust, they have certain duties. These duties are about figuring out how much money the trust made and telling the government about it.

The law treats all the trustees as if they were one person. This means they all share the responsibility for doing these duties. They must work together to make sure everything is done correctly.

If the trustees don’t make a special choice about how to handle the trust, the law looks at where the trustees live. If at least one trustee lives in New Zealand, the law treats the trust as if it’s based in New Zealand. If none of the trustees live in New Zealand, the law treats the trust as if it’s based outside of New Zealand.

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Next up: HC 3: Multiple settlements

or “How trustees can manage multiple contributions to a trust as one entity”
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Part H Taxation of certain entities
Trusts

HC 2Obligations of joint trustees for calculating income and providing returns

  1. This section applies for the purposes of the obligations imposed by section BB 2 (Main obligations) on 2 or more persons who derive income jointly as trustees of a trust.

  2. The trustees of the trust are treated in that capacity as if they were a notional single person and are jointly and severally liable to satisfy the obligations imposed by section BB 2 on the notional single person.

  3. If no election under section HC 33 is made for the trust, the notional single person referred to in subsection (2) is—

  4. a New Zealand resident when 1 or more of the trustees is resident in New Zealand:
    1. a non-resident when none of the trustees is resident in New Zealand.

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      Notes
      • Section HC 2(2): replaced, on , by section 132(1) (and see section 132(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section HC 2(3) heading: inserted, on , by section 132(2) (and see section 132(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section HC 2(3): inserted, on , by section 132(2) (and see section 132(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section HC 2 list of defined terms New Zealand resident: inserted, on , by section 132(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section HC 2 list of defined terms non-resident: inserted, on , by section 132(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section HC 2 list of defined terms resident in New Zealand: inserted, on , by section 132(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).