A question for any legal eagles!
What are the issues to move the domicile of an Australian trust to New Zealand?
Hi,
It is difficult to provide a comprehensive answer to an open-ended question such as yours and with very little in the way of a scenario.
I can tell you one issue is the tax issue. Once the trust changes from a NZ tax prespective from a foreign trust to a qualifying trust, IRD will want to charge the trust tax at 45% on the accumulated funds after 1/4/88.
So you would not want to do this lightly or on a whim.
Christopher Raynal
Master Accountants Group Limited
PO Box 46018 Herne Bay
Auckland New Zealand
Ph +64 9 360 3259
Fax +64 9 360 2180
http://www.masteraccountants.co.nzHi Chris,
The trust is only a few months old and holds 3 properties, so I’m assuming there won’t be much of a tax problem. Becuase it’s currently an Australian Trust it is hard to borrow in NZ against the properties.
Hi,
There are differences between NZ Trust Law and just about every other jurisdiction, so why not set up an NZ Trust to handle proposed property investments in NZ? It quarantines the properties on both sides of the Tasman, and you won’t pay CGT on your NZ properties.
Christopher Raynal
Master Accountants Group Limited
PO Box 46018 Herne Bay
Auckland New Zealand
Ph +64 9 360 3259
Fax +64 9 360 2180
http://www.masteraccountants.co.nzThanks Christopher, I’ll be emailing your firm shortly to do just that !
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