Domestic trust tax disclosures: what should trustees prepare for their accountant?
New Zealand domestic trusts that fall within Inland Revenue’s additional reporting rules must supply financial and people-related information with their IR6 return. Trustees should establish whether the rules apply, organise settlement and distribution records, and identify appointment powers. Tax reporting is separate from the Trusts Act duties concerning records and beneficiary information.
Does every trust have to make additional tax disclosures?
No. Inland Revenue identifies exclusions, including trusts with no assessable income and certain specified trust types. A non-active declaration also has its own conditions. Check the trust’s actual position instead of assuming that every family trust has identical reporting obligations.
Start the annual conversation by describing what the trust owned and did during the year. Tell the accountant about a new rental, bank interest, a property transaction or a change in use. Last year’s answer may no longer fit. Inland Revenue’s domestic trust reporting guidance is the starting point.
What information should trustees gather before the return is prepared?
Gather a complete financial record and the legal documents needed to explain it. The accountant needs more than the year-end bank balance; trustees need to understand the transactions they authorised.
- Accounts and records of income, expenses, assets and liabilities.
- Trust deed, amendments and trustee appointment or retirement documents.
- Details of value transferred to the trust and any debt forgiveness.
- Beneficiary allocations, distributions and movements in beneficiary accounts.
- Details of people holding relevant powers of appointment.
- Resolutions and supporting agreements for significant transactions.
For example, a family contribution used for a deposit needs a clear explanation. Was it a loan to trustees, a gift or payment for an interest? The description should agree with the documentation, rather than being chosen when the return is nearly due.
How do settlor, beneficiary and appointment-power disclosures differ?
They concern different roles. A person may fill more than one role, but the information should not be treated as interchangeable.
| Role or transaction | What to check with the accountant |
|---|---|
| Settlor or settlement | Who transferred value, and the nature and amount to be reported. |
| Beneficiary allocation or distribution | Who received it, its treatment and relevant account movements. |
| Power of appointment | Who can exercise relevant powers and the dates they held them. |
Do not confuse a trust appointment power with an Enduring Power of Attorney. Check the deed and subsequent documents to identify who holds the trust power.
Can you rely on the original 2022 reporting checklist?
Not without checking current guidance. Inland Revenue describes changes from the 2025 tax year concerning certain non-cash settlements and distributions. Ask which details must be disclosed for the year being filed; do not treat a reporting concession as permission to stop keeping records.
Have the accountant confirm the current forms and any financial-statement requirements. If a past return may be incomplete, establish what happened and the appropriate correction process rather than silently changing the historical account.
Does filing the IR6 satisfy beneficiary-information duties?
No. The Trusts Act 2019 separately addresses core documents and information for beneficiaries. Its beneficiary provisions involve presumptions and specified considerations, rather than an automatic right to every document. Tax filing does not decide a beneficiary request.
Our family trusts and asset-protection team can review the deed and governance records. Where an information request has become contentious, estate and trust disputes advice may also be appropriate.
How can trustees make next year’s reporting easier?
Keep one controlled set of documents, record decisions when made and agree responsibilities with the accountant. Review the records when a trustee changes or a major asset is bought or sold. Clear records help the next adviser understand the trust without reconstructing years of family conversations.
Contact Canterbury Legal with the deed, recent accounts and the question you need resolved. We can help coordinate the legal records with your accountant’s reporting work.
What other questions do people ask?
Does a trust holding only a home automatically need additional tax disclosures?
A trust with no assessable income is excluded from these additional reporting rules under Inland Revenue’s guidance. Confirm the actual income and filing position rather than relying on the description “family-home trust”.
Are tax disclosures the same as disclosure to beneficiaries?
No. They are separate obligations under different rules. Deal with tax reporting and beneficiary-information questions individually.
Can an accountant identify appointment powers from bank statements?
Usually the trust deed and subsequent legal documents are needed to establish those powers. Give the accountant the relevant documents and ask for legal clarification where necessary.
Which official sources explain these rules?
- Inland Revenue: additional domestic trust reporting
- Inland Revenue: trusts and tax residency
- Trusts Act 2019: records and beneficiary information
Information checked on 28 October 2026. This article provides general information about New Zealand law and is not a substitute for advice about your circumstances.
