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Income Tax Act 2007

Taxation of certain entities - Trusts

HC 4: Corpus of trust

You could also call this:

"The 'Corpus of trust' means the value of property given to a trust."

Illustration for Income Tax Act 2007

When you are looking at the rules for trusts, the term corpus refers to the value of property that is settled on a trust. The value of the property is determined at the time it is settled on the trust. You can find more information about how to treat settlements in section HC 3. The corpus of a trust does not include the value of certain property settlements. These settlements are excluded if they are from another trust and the property is not given to a beneficiary who lives in New Zealand. The property is also excluded if it would be income for the person who settled it on the trust. Some property settlements are excluded from the corpus of a trust. This includes settlements for which the person who settled the property is allowed a deduction. It also includes settlements that would be income for the person who settled the property if it were not settled on the trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517257.

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Part HTaxation of certain entities
Trusts

HC 4Corpus of trust

  1. In the trust rules, corpus for a trust means the settlement value under subsection (1B) of property settled on the trust that is not excluded by subsection (2).

  2. For property meeting the requirements of subsection (1), the value under this subsection (the settlement value) of the property settled on a trust is—

  3. the market value of the property determined at the time of the settlement of the property, for a single settlement on the trust; or
    1. the total of the amounts determined under paragraph (a) for each settlement of property, if the trustee treats the settlements in the way permitted by section HC 3.

      1. Corpus does not include an amount equal to the market value of the property settlements described in subsections (3) to (5).

      2. A property settlement by a trustee of another trust is excluded from corpus to the extent to which the property—

      3. is not first distributed to a beneficiary, resident in New Zealand, of the other trust; and
        1. if it were first distributed to a beneficiary, resident in New Zealand, of the other trust, the property would be beneficiary income or a taxable distribution to that beneficiary.

          1. A property settlement for which the settlor is allowed a deduction is excluded from corpus.

          2. A property settlement is excluded from corpus if, but for the fact of the settlement,—

          3. it would be income of the settlor; or
              1. it would fall under paragraph (a) if the settlor were resident in New Zealand at the time of the settlement.

                Compare
                • 2004 No 35 s OB 1 corpus
                Notes
                • Section HC 4(1) heading: replaced, on , by section 133 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                • Section HC 4(1): replaced, on , by section 133 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                • Section HC 4(1B) heading: inserted, on , by section 133 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                • Section HC 4(1B): inserted, on , by section 133 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                • Section HC 4(3): replaced, on , by section 87(1) (and see section 87(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                • Section HC 4(5)(b): repealed (with effect on 30 June 2009), on , by section 260(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section HC 4(5)(c): substituted (with effect on 30 June 2009), on , by section 260(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section HC 4 list of defined terms FDP: repealed (with effect on 30 June 2009), on , by section 260(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).