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Income Tax Act 2007

Tax credits paid in cash - Adjustment of net income for family scheme

MB 12B: Family scheme income from trusts, not being beneficiary income, and where recipient not settlor

You could also call this:

“Trust payments that count towards family scheme income”

This section talks about how money you get from a trust might affect your family scheme income. Family scheme income is important for working out if you can get certain types of help from the government.

If you get money from a trust, it might count as part of your family scheme income. This happens when:

You get the money from the trust in the income year.
The money isn’t what’s called ‘beneficiary income’.
You’re not the person who set up the trust (called a settlor).

If all these things are true, then the money you got from the trust will be added to your family scheme income for that year.

However, sometimes the Commissioner (a person in charge of taxes) might decide that some trust payments shouldn’t be counted. If the Commissioner has said that the type of payment you got shouldn’t be counted, then it won’t be added to your family scheme income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS223634.

Topics:

Money and consumer rights > Taxes

MB 12: Family scheme income from non-residents' foreign-sourced income, or

“Overseas income from your partner counts towards family scheme income”

MB 13: Family scheme income from other payments, or

“Income from other sources used for living expenses”

Part M Tax credits paid in cash
Adjustment of net income for family scheme

MB 12BFamily scheme income from trusts, not being beneficiary income, and where recipient not settlor

This section applies for the purpose of determining the amount that represents the family scheme income of a person for an income year when—
the person receives a payment from a trust in the income year; and
the payment is not beneficiary income of the person; and
the person is not the settlor of the trust.

The amount of the payment is included in the family scheme income of the person for the income year.
Despite subsection (2), the Commissioner may determine the circumstances in which a payment from a trust should be excluded for the purposes of calculating family scheme income. If a person receives a payment from a trust in circumstances in which the Commissioner has determined that a payment should be excluded for the purposes of calculating family scheme income, the amount of the payment is not included in the family scheme income of the person for the income year.

Notes

Section MB 12B: inserted, on 26 June 2019, by section 69 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).