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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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Resigning as a trustee of a NZ trust

Written by Anthony McIlroy on September 13th, 2016.      0 comments

Trustees are personally liable for the tax obligations of the trust. 


trust-233If a trustee resigns as trustee of a trust they must let IRD know in writing, as soon as possible following the resignation, so IRD can update their records.

Related reading: Resigning as a NZ trustee

If a trustee resigns and doesn't let IRD know, they'll still recognise them as a trustee which makes them liable for any tax obligations of the trust. IRD will continue to recognise them as a trustee until written confirmation is received.

For income tax and GST purposes, a trustee may be liable for any outstanding tax for the periods they were a trustee. This includes the period of time between their resignation and IRD receiving confirmation of the resignation. This liability continues until the debt is paid.

The best thing you can do as a trustee is to have all your trust accounting and tax matters reviewed by Alliotts in Auckland to both ensure that all the correct checks and balances are in place and that there is a formal schedule of communication with respect to keeping IRD informed of any changes, which inevitably do happen. Call us today on 09 520 9200.
Source IRD
Topics: IRD , trust
 

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