With the increase in the Trust tax rate to 39%, the IRD is likely to be reviewing Trustee behavior more closely. We are also seeing many leave New Zealand for greener pastures due to the cost-of-living crisis. That is likely to give rise to a greater number of overseas beneficiaries being part of New Zealand Trusts. When settling a Trust, or administering a Trust as a Trustee, it is important to bear in mind what impact beneficiaries living overseas may have.

The focus of this webinar will be on taxation issues associated with overseas beneficiaries including:

• Are they or could they become a settlor of the Trust and what could that mean for the Trust?
• What is the source of the income and what income is distributed to them?
• What withholding obligations might arise in terms of distributions made?
• What happens when the beneficiaries become non-resident?
• What happens if non-resident beneficiaries become resident?
• What needs to be considered in terms of Trust Disclosures?

Upon satisfactory completion of this activity you will be able to:

• Understand the impact an overseas beneficiary could have on the Trust itself
• Identify the tax implications of beneficiaries becoming non-resident
• Assist trustees in understanding their options and obligations

This course will be suited to: 

• accountants and lawyers who act for trusts
• accountants and lawyers who are trustees of trusts and want to understand what needs to be considered in beneficiaries travel overseas or return from overseas.

1.25 CPD hours

PRESENTER

Nola Crafar, Senior Manager, Findex/Crowe

Nola is a Senior Manager for Findex in the Dunedin Tax Team.  Nola has been with Findex for over 15 years, where she advises on a wide range of tax matters, including property transactions and property ownership structures, structuring opportunities for businesses including relationship property considerations, providing advice on the tax treatment of transactions for clients and other professional advisory firms and managing Inland Revenue Department queries, disputes and debt relief applications.