Most trustees of New Zealand domestic trusts are required to prepare financial statements and provide additional information with their income tax returns from the 2021/22 income year.
Trustees will be required to provide to Inland Revenue:
- A statement of financial position setting out the assets, liabilities, and net assets of the trust
- A statement of profit or loss showing income derived, and expenditure incurred
- The nature and amount of any settlement made on the trust during the year
- The details of anyone who is a settlor of the trust
- The amount of any distributions made during the year, and the details of the beneficiary who received the distribution
- Details of any person who has powers to appoint or remove trustees and beneficiaries or amend the trust deed
Additional requirements apply to trusts with income of $100,000 or more. Such trusts must apply the principles of accrual accounting and include the following with their income tax returns:
- A statement of accounting policies
- Comparable figures
- A reconciliation
- A schedule of fixed assets and depreciable property
- Information about associated person transactions
Smaller trusts (or "simplified reporting trusts") do not have to comply with these additional requirements. A simplified reporting trust is one that has:
- Income of less than $100,000
- Deductible expenditure of less than $100,000
- Total assets of less than $5 million
