Part HTaxation of certain entities
Trusts
HC 7Trustee income
To the extent to which it is not beneficiary income, an amount of income derived by a trustee of a trust is trustee income.
An amount of beneficiary income to which section HC 35 applies that is derived in an income year by a person who is a minor is treated as if it were trustee income for the purposes of—
- determining the tax rate that applies; and
- paying the tax; and
- providing returns of income.
The trustee of a trust has, from a property settlement that is referred to in section HC 4(3) to (5) and made in an income year, an amount of trustee income for the income year equal to the market value of the property settlement reduced by the amount of the market value that the trustee treats as beneficiary income, or as a taxable distribution made by the trustee, in the income year.
Compare
- 2004 No 35 ss HH 1(7), HH 3A(1)(a), OB 1
trustee income
Notes
- Section HC 7(2): amended (with effect on 1 April 2008), on , by section 261(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
- Section HC 7(3): replaced (with effect on 1 April 2008), on , by section 134(1) (and see section 134(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
- Section HC 7 list of defined terms taxable distribution: inserted (with effect on 1 April 2008), on , by section 134(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).