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Tax Administration Act 1994

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

59DB: Deregistration of foreign exemption trusts

You could also call this:

"What happens when a foreign trust no longer meets the rules and gets deregistered"

Illustration for Tax Administration Act 1994

The Commissioner can deregister a foreign exemption trust if it does not meet the requirements. You need to know that this can happen if the trust did not meet the requirements when it was registered or if it stopped meeting them later. The Commissioner can deregister the trust from the time it was registered or from a later time. The Commissioner can choose when the deregistration starts. This can be from when the trust was registered or from a later time when it stopped meeting the requirements. You will get a notice if the Commissioner plans to deregister the trust. If the Commissioner plans to deregister a trust, they must give the trust's contact trustee notice at least 30 days before. The contact trustee must ask the Commissioner to deregister the trust if they find out it does not meet the requirements. When the trustee asks for deregistration, they must give the Commissioner reasons for the request and some extra information. This includes a return for the trust for the income year it was registered and any other information the Commissioner needs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS835582.

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

59DBDeregistration of foreign exemption trusts

  1. The Commissioner may deregister a trust that is registered as a foreign exemption trust if the Commissioner considers that the trust,—

  2. at the time of registration, did not meet the requirements for registration:
    1. after the time of registration, ceased to meet the requirements for registration.

      1. A deregistration under subsection (1) may be effective from—

      2. the time of registration, if the Commissioner considers the trust did not meet the requirements for the registration; or
        1. a time after the registration at which the Commissioner considers the trust had ceased to meet the requirements for registration.

          1. If the Commissioner proposes to deregister a trust, the Commissioner must give notice of the proposal to the contact trustee of the trust not less than 30 days before the deregistration is implemented.

          2. The contact trustee for a trust must apply to the Commissioner for deregistration of the trust if the trustee becomes aware that the trust does not meet the requirements for registration.

          3. A trustee making an application under subsection (4) must provide with the application—

          4. the reasons for the application; and
            1. a return for the trust for the income year, or part of the income year, for which the trust meets the requirements for registration and that includes the day before the day on which the trust ceases to meet the requirements for registration; and
              1. further information required by the Commissioner.

                Notes
                • Section 59DB: inserted, on , by section 179 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).