Inland Revenue’s Issues Paper has been drafted by officials following a law change to the Tax Administration Act 1994. The new rules require certain trusts to provide information to Inland Revenue, including financial statements. The aim of the Issues Paper is to outline the contents of a proposed Order in Council to specify the information that will be required.
The Issues Paper suggests that trusts will be required to prepare the financial statements but not file them. We have suggested that trusts should have the option to file either the financial statements or the prescribed form. We have also suggested changes to the thresholds and recommended a law change to make the rules clearer.