All Topics / Help Needed! / taxation of non-resident trust income NZ

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  • Profile photo of recoverymanrecoveryman
    Member
    @recoveryman
    Join Date: 2003
    Post Count: 122

    Hi all
    I have some PI in NZ in own name
    accountant in NZ informs me to put in a trust
    accountant in oz says no as I am up for tax from the income from trust
    question 18b on tax r/t
    (accruals taxation of mom-resident trust income)
    so does anyone ahve any ideas about leaving PI in own name or put in trust and have to pay tax when the trust starts to make money
    glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I don’t invest in NZ, and don’t know much about tax there, but Wouldn’t you have to declare the income in Australia anyway if it was in your own name? A Trust may give more flexibility in distributing it to the lowest tax paying beneficiary, or even to a company in NZ and leaving it there. And what are the costs to transfer it to a trust – you may have to pay CGT here.

    Terryw
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    Profile photo of CastleDreamerCastleDreamer
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    @castledreamer
    Join Date: 2003
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    Hi Recoveryman,
    you really need to speak with an NZ accountant and an Aussie Accountant. I seriously recommend not just taking an Aussie accountant’s advice unless they have good NZ tax knowledge, and vice versa. I have my accountants talk to each other to make sure it works on both sides of the Tasman.
    Cheers
    CD

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    Profile photo of recoverymanrecoveryman
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    @recoveryman
    Join Date: 2003
    Post Count: 122

    Hi
    CD both accountants have talked to each other
    and have agreed own name is best
    Terry
    minium cost to transfer, but accountants say own name better, you do have higher cost per year in trust
    p.s I dont have a income only live off PI low cashflow which would make a difference for tax reasons
    Glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of recoverymanrecoveryman
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    @recoveryman
    Join Date: 2003
    Post Count: 122

    hi
    all, any other ideas
    glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of GreatPigGreatPig
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    @greatpig
    Join Date: 2004
    Post Count: 284

    Glenn,

    Just a general comment…

    It would depend on your complete circumstances, like if you’re intending to buy more properties in future, whether you’d be the only beneficiary of a trust, whether you’re likely to have other sources of income in the future, whether you’re expecting cashflow to exceed your daily needs, whether you’re planning on selling at some time, whether you’re running any business with a risk of being sued, and so on.

    There are more things to consider than just the tax implications. Trusts are more expensive to operate, and if you bring all the income back to Australia then you’ll be taxed on it either way. So personal name may well be better, but it depends on all the other aspects as well.

    GP

    Profile photo of recoverymanrecoveryman
    Member
    @recoveryman
    Join Date: 2003
    Post Count: 122

    Hi
    thanks for the info
    for me having them in own name is best
    no high income
    not likely to be sued
    and still concernedabout that question about trust in the tax r/t
    also spoke to my solisoter here and in NZ
    both agree for me trust are not right
    glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of recoverymanrecoveryman
    Member
    @recoveryman
    Join Date: 2003
    Post Count: 122

    Hi
    thanks for the info
    for me having them in own name is best
    no high income
    not likely to be sued
    and still concernedabout that question about trust in the tax r/t
    also spoke to my solisoter here and in NZ
    both agree for me trust are not right
    glenn

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

Viewing 8 posts - 1 through 8 (of 8 total)

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