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Tax Administration Act 1994

Information, record-keeping, and returns - Returns - Fringe benefits

59BA: Annual return for trusts

You could also call this:

"Trusts must file a tax return each year with their income and financial details."

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You are a trustee of a trust and you get income from it. You must file a return for the tax year with all the income you got. The return must be in a certain form and have certain information. You must include things like a statement of profit or loss and a statement of financial position. You must also include details about settlements and distributions made by the trust. This includes the amount and nature of each settlement or distribution. If you are not a New Zealand resident, a New Zealand resident settlor must make sure you do what you are supposed to do. The Commissioner can change the requirements for a trustee or a group of trustees. These changes are secondary legislation, which you can read about in Part 3 of the Legislation Act 2019 https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7298343

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS437234.

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Part 3Information, record-keeping, and returns
Returns: Fringe benefits

59BAAnnual return for trusts

  1. A trustee of a trust who derives assessable income for a tax year must file a return for the tax year of all income derived in the corresponding income year by the trustee as trustee of the trust.

  2. A trustee who is required to file a return for a tax year under subsection (1) and does not meet the requirements of subsection (3) must make the return in the form prescribed by the Commissioner and include, unless otherwise required by the Commissioner,—

  3. a statement of profit or loss and a statement of financial position:
    1. the amount, and nature, of each settlement that—
      1. is not the provision to the trustee, at less than market value, of minor services incidental to the activities of the trust; and
        1. is made on the trust in the income year:
        2. the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of each settlor who makes a settlement on the trust in the income year or whose details have not previously been supplied to the Commissioner:
          1. the amount, and nature, of each distribution that—
            1. is not a distribution, other than of money, that is minor and incidental to the activities of the trust; and
              1. is made by the trustee in the income year:
              2. the name, date of birth, jurisdiction of tax residence, and tax file number or taxpayer identification number, of the beneficiary who receives a distribution referred to in paragraph (d):
                1. the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of each person having a power under the trust to appoint or dismiss a trustee, to add or remove a beneficiary, or to amend the trust deed:
                  1. the other information required by the Commissioner.

                    1. A trustee of a trust who is required to file a return for a tax year under subsection (1) is not required to file a return in the form required by subsection (2) if—

                    2. the trustee is excluded from the requirement to make a return by section 43B:
                      1. the trust is a foreign exemption trust:
                        1. the trustees of the trust are incorporated as a board under the Charitable Trusts Act 1957:
                          1. the trust is a charitable trust registered under the Charities Act 2005:
                            1. the trustee is eligible under section HF 2 of the Income Tax Act 2007 to choose under section HF 11 of that Act to become a Maori authority:
                              1. the trust is a widely-held superannuation fund, as defined in section YA 1 of the Income Tax Act 2007:
                                1. the trust is an employee share scheme that is an exempt ESS, as defined in section YA 1 of the Income Tax Act 2007:
                                  1. the trustee is a debt funding special purpose vehicle, as defined in section YA 1 of the Income Tax Act 2007:
                                    1. the trustee is a lines trust established under the Energy Companies Act 1992.

                                      1. If the trustee of a trust is a non-resident, a settlor of the trust who is a New Zealand resident is responsible for ensuring the performance of the obligations imposed on the trustee by this section.

                                      2. The Commissioner may vary the requirements set out in subsection (2) for a trustee or class of trustees.

                                      3. A variation under subsection (5) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                                      Notes
                                      • Section 59BA: inserted, on , by section 35(1) (and see section 35(2) for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
                                      • Section 59BA(1): replaced, on , by section 162(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                      • Section 59BA(2): amended, on , by section 162(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                      • Section 59BA(2)(d): replaced, on , by section 194(1) (and see section 194(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                      • Section 59BA(2)(db): inserted, on , by section 194(1) (and see section 194(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                      • Section 59BA(3): replaced, on , by section 162(3) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                      • Section 59BA(3)(a): amended (with effect on 1 April 2021), on , by section 175(1) (and see section 175(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                      • Section 59BA(3)(b): replaced, on , by section 194(2) (and see section 194(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                      • Section 59BA(3)(b): amended (with effect on 1 April 2021), on , by section 175(2) (and see section 175(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                      • Section 59BA(5): inserted, on , by section 162(4) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                      • Section 59BA(6): inserted, on , by section 162(4) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).