CA ANZ provided feedback on draft operational statement – Reporting requirements for domestic trusts ED0235.
The draft statement sets out in detail the information that Inland Revenue will require to be disclosed under the trust reporting rules from the 2021-22 income year. CA ANZ’s key submissions:
- The volume of information required to be gathered and disclosed should be reduced.
- Preparation of separate financial statements from that required under the Trusts Act 2019 should not be required.
- The item should clarify how/where/the form in which the information will be required to be disclosed.
- Amounts relating to private assets/transactions should not be combined with the business amounts in the IR10 form.
- More guidance is required on what the Commissioner would regard to be “minor services incidental to the activities of the trust”.
- Details of settlors prior to the 2021-22 income year should not be required.
- Aspects of the draft statement should be reviewed, reconsidered and clarified.