Many clients use trusts to hold income-earning assets and investments. With the advent of the Trusts Act 2019, clients have been reviewing their trust arrangements. Often this review has resulted in a recommendation to resettle their existing trust onto a new trust with a modern trust deed.

Resettling a trust is a disposal for income tax purposes and a supply for GST purposes. Accordingly, a resettlement can result in unwanted income tax and GST obligations, such as tax under the bright-line rule, resetting the bright-line date, and leaving trustees with GST liabilities.

The focus of this webinar will be on taxation issues associated with resettlements of trusts.

Issues examined will include:

• General income tax rules applying to resettlements
• Implications under the bright-line test
• Effects on shareholder continuity where the trust is a shareholder
• General GST rules applying to resettlements
• Time of supply and value of supply rules

Suitable for:

• Accountants and lawyers who act for trusts
• Accountants and lawyers who are trustees of trusts and want to ensure the trust is meeting its tax obligations