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Will all NZ trusts require an IRD number due to the new IRD 1st Oct foreign buyers rule ?
Never mind, I found the article.
Family trusts will be caught in foreigner home-buying crackdown ...
Will all NZ trusts require an IRD number due to the new IRD 1st Oct foreign buyers rule ?
Never mind, I found the article.
Family trusts will be caught in foreigner home-buying crackdown ...
People with family trusts will have a new bit of red tape to cope with thanks to the planned crackdown on foreigners.
The Taxation (Land Information and Offshore Persons Information) Bill has been designed to gather information on local and foreign property buyers and will require foreign buyers to get an Inland Revenue Department number and a New Zealand bank account.
But the way the bill is drafted would also catch family trusts, accountants say.
Many family trusts only hold the family home, a legacy of a wave of trust sales more than a decade ago when people sought to shield the home from means-testing on rest home subsidies.
As a result many family trusts do not have IRD numbers because they do not generate taxable income.
But they would have to get IRD numbers under the proposed new laws, as trusts will rank alongside of foreigners when buying or selling property.
The Taxation (Land Information and Offshore Persons Information) Bill has been designed to gather information on local and foreign property buyers and will require foreign buyers to get an Inland Revenue Department number and a New Zealand bank account.
But the way the bill is drafted would also catch family trusts, accountants say.
Many family trusts only hold the family home, a legacy of a wave of trust sales more than a decade ago when people sought to shield the home from means-testing on rest home subsidies.
As a result many family trusts do not have IRD numbers because they do not generate taxable income.
But they would have to get IRD numbers under the proposed new laws, as trusts will rank alongside of foreigners when buying or selling property.
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