Description

The 39% Trustee Tax Rate, Tax Planning and Trusts, and other Tax Issues.

The taxation of trusts has been in the spotlight again following the recent increase in the trustee tax rate to 39% and the issue of the Commissioner’s guidance on tax planning in the light of the 39% trustee tax rate.

This webinar considers the application of the 39% trustee tax rate, when the rules to mitigate the “over-taxation” of trust income apply, the scope of the specific anti-avoidance rule directed at distributions to certain corporate beneficiaries, and the Commissioner’s guidance on tax planning in the light of the 39% trustee tax rate.

In addition, this webinar will consider the tax implications (and tax traps) arising from making distributions to beneficiaries, varying the terms of a trust and trust resettlements, and the impact of the recent changes to the bright-line test on trusts (including when “rollover relief” applies).

ORIGINAL BROADCAST DATE

22 August 2024

LEARNING OUTCOMES

You will:

• Learn how the new 39% trustee tax rate affects trust structures and when the new rules which mitigate the “over-taxation” of trust income apply
• Understand the scope of the specific tax avoidance rule directed at distributions to certain corporate beneficiaries
• Hear about the Commissioner’s latest guidance on tax planning and trusts, including what behaviours may result in an Inland Revenue investigation
• Understand how the bright-line test applies to property held in trust, including the application of the “main home exclusion” and recent changes to the “rollover relief” provisions
• Know what tax issues arise on distributions, including the distribution of “deemed income” and imputation credit streaming
• Learn about the GST and income tax implications arising on varying the terms of a trust and trust resettlements
• Understand when debt forgiveness programmes can give rise to a tax liability, including when trusts are resettled

SUITED TO 

Accountants of all levels, tax lawyers, trust lawyers and others who act as trustees of clients’ trusts.

PRESENTER

Stephen Tomlinson, Principal, Tomlinson Law

Stephen Tomlinson is the principal of Tomlinson Law. Stephen has lectured in taxation, finance and business law at the University of Canterbury and is a well-known presenter of taxation and trust seminars and webinars. Stephen advises accounting firms and law firms on a wide range of tax issues. He is a member of the NZLS taxation committee and The Law Association Trust Law Committee.