As you are probably already aware, trusts now have more reporting requirements with the IRD. However, in some circumstances, trusts, especially family trusts, may have been made non-active with the IRD, which means there is no income to report (and no tax to pay).
Although a trust may not generate any income, and therefore may not be required to file an income tax return, it is still important to prepare financial statements for several reasons.
While not compulsory if a trust does not earn income, or has passive income below the $1,000 threshold, for the reasons outlined above, we consider it best practice for all trusts to prepare financial statements.
Please contact GRA if you would like to know more about completing financial statements for your trust, and we will be happy to provide you with a quote.
GRA's services are top notch. I took their property course online over COVID, and then I went to them for a second opinion on some property tax advice I'd received that didn't sound quite right to me. They set me right and saved me from a massive IRD bill. After that I moved over to them full-time. They've given me ongoing sound tax and asset planning advice, and I greatly appreciate and value my annual review meeting with my accountant. I can't speak more highly of GRA in looking out for my best interests.
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Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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