43BTrustees, administrators, or executors of certain trusts or estates not required to file returns

1. A person who is a trustee of a trust or an administrator or executor of an estate is not required to make a return of income for a tax year for the trust or estate if—

2. the trust or estate is non-active throughout the income year corresponding to the tax year; and
3. for a person who is a trustee, the trust is a complying trust under section HC 10 of the Income Tax Act 2007; and
4. if the trust or estate has a tax file number, the person has provided to the Commissioner, in a form approved by the Commissioner,—
   1. a declaration that the trust or estate is non-active and that the person will notify the Commissioner if the trust or estate ceases to be non-active; and
   2. a statement of the matters required by the Commissioner.

5. For the purposes of this section, a trust or estate is non-active for a tax year if, throughout the income year corresponding to the tax year, the trustee of the trust or the administrator or executor of the estate—

6. has not derived any assessable income; and
7. has no deductions; and
8. has not been a party to, or perpetuated, or continued with, transactions with assets of the trust or estate with a person who is associated with the trustee of the trust or executor or administrator of the estate which, during the income year corresponding to the tax year,—
   1. give rise to income in that person’s hands; or
   2. give rise to fringe benefits to that person in their capacity as an employee or former employee.

9. In determining whether a trust or estate complies with the requirements of subsection (2), no account shall be taken of any—

10. reasonable fees paid to professional persons to administer the trust or estate; or
11. bank charges or other minimal administration costs totalling not more than $1,500 in the tax year; or
12. income derived by the trustee of a trust or an administrator or executor of an estate during the tax year that would be reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust or estate were an individual, to the extent to which the total amount of that income does not exceed $1,000; or
13. insurance, rates, interest, and other expenditure incidental to the occupation of a dwelling owned by the trust or estate and incurred by the beneficiaries of the trust or estate.

14. If subsection (1) does not apply, a person who is a trustee of a trust is also not required to make a return of income for a tax year for the trust—

15. if the trust is a testamentary trust; and
16. the trust is a complying trust under section HC 10 of the Income Tax Act 2007; and
17. if the trust has a tax file number, the person has provided to the Commissioner, in a form approved by the Commissioner,—
    1. a declaration that the trust meets the requirements of this subsection and that the person will notify the Commissioner if the trust ceases to meet those requirements; and
    2. a statement of the matters required by the Commissioner; and
18. the trustee of the trust has derived no assessable income or has derived assessable income that would be reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust were an individual, of a total amount not exceeding $5,000 for the income year corresponding with the tax year; and
19. the trustee of the trust has derived an amount, that does not exceed $1,000 in total for the tax year, of assessable income that is not reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust were an individual, and the trustee of the trust has incurred in the tax year a total amount of deductible expenditure that is not exceeded by the assessable income by more than $200 for the income year corresponding with the tax year.

20. If subsection (2) or (3B) cease to apply to a trust or estate, a trustee of the trust or administrator or executor of the estate must notify the Commissioner that the relevant subsection no longer applies.

21. Despite subsection (1) or (3B), a person referred to in subsection (1) or (3B) must furnish a return of income if required by the Commissioner to do so.