Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Definitions and related matters - Associated persons and nominees - Table Y1: Associated person rules

YB 8: Trustee and settlor

You could also call this:

“Settlors and trustees are considered connected, except for tax charities”

When someone sets up a trust, they are called a settlor. The person who manages the trust is called a trustee. This law says that the settlor and the trustee are connected to each other. They are what the law calls “associated persons”.

However, this rule doesn’t apply if the trust is a special kind called a tax charity. Tax charities are treated differently under this law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523014.

Topics:
Money and consumer rights > Taxes
Previous

YB 7: Two trustees with common settlor, or

“Trustees of different trusts created by the same person or their partner are associated”

Next

YB 9: Settlor and beneficiary, or

“Trust creators and their beneficiaries are considered connected”

Part Y Definitions and related matters
Associated persons and nominees: Table Y1: Associated person rules

YB 8Trustee and settlor

  1. A trustee of a trust and a settlor of the trust are associated persons.

  2. This section does not apply if the trust is a tax charity.

Notes
  • Section YB 8: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section YB 8(2): amended, on , by section 119(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section YB 8 list of defined terms charitable trust: repealed, on , by section 119(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section YB 8 list of defined terms tax charity: inserted, on , by section 119(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).