Family Trusts May Have to Get an IRD Number Even if the Trust Earns No Income

Many family homes in New Zealand are owned by family trusts. Typically the trustees are one or two family members along with a professional person suchas a lawyer or accountant. The trustees are the registered owners of the family home. The family members usually pay the rates, insurance and any mortgagepayments themselves. No rent is charged and until now there has been no need to register the trust with the Inland Revenue Department as there hasbeen no income received by the trustees. Parliament is now considering the Taxation (Land Information and Offshore Persons Information) Bill whichwill implement changes announced in the budget requiring non tax residents to register with the IRD.
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