This section provides some guidance on completing the forms for New Zealand Foreign Trusts (NZFTs). This includes making sure that all forms are signed by the resident foreign trustee.
If the forms are not completed properly, this will lead to delays and extra administration costs.
Foreign trust connected person schedule - IR607A
The IR607A form is used to provide details of connected persons when required. Information on connected persons (including updates) must be recorded on this form.
Note the following points.
| Point | Checklist |
|---|---|
|
1 |
Taxpayer Identification Numbers (TINs) should be provided for the jurisdiction of tax residence. |
|
2 |
If a jurisdiction does not issue TINs or a person does not have one, provide an explanation, such as one of the following.
|
|
3 |
If a connected person cannot be contacted, provide an explanation of attempts made to reach that person (in an attached and signed letter, referenced on the form). |
|
4 |
If a settlor is deceased, provide their last known jurisdiction of tax residence and/or their last known physical address. |
|
5 |
Where beneficiaries are described as a class include a description of this class on the form (that is, children of the settlor). |
|
6 |
Where a beneficiary receives a distribution during a return year, their full details must be provided. |
Connected persons are:
- persons who have made settlements on the trust (that is, settlors)
- persons who have a power to appoint or dismiss a trustee, amend the trust deed, or to add or remove a beneficiary (that is, appointors)
- persons with the power to control the exercise of a power to appoint or dismiss a trustee, amend the trust deed, or to add or remove a beneficiary and persons who have the power to control a trustee in the administration of the trust (that is, protectors)
- trustees
- beneficiaries.
Foreign trusts settlements and distributions schedule - IR900A
The IR900A form is used to disclose details of settlements and distributions. It is used in both the registration and annual return processes.
All persons recorded on the IR900A form must match persons whose details have been disclosed on the IR607A form. The names of the settlors or beneficiaries must match exactly.
On application to register an NZFT, the resident foreign trustee must use this form to record details of all historical settlements on the trust. Where all resident foreign trustees of a trust are natural persons who are not in the business of providing trustee services, lesser disclosure requirements may apply.
As part of the annual return process, the resident foreign trustee must record details of settlements and distributions made during the ‘return year’.
Payments: Foreign trust registration and annual return forms - IR607 and IR900
Trustees must make payments in accordance with the instructions on the reverse side of the IR607 and IR900 forms ensuring that these are made to the correct bank account.
If the code and reference are not completed consistently with these instructions, we will be unable to determine whether payment has in fact been made and will have to contact you to request further information. To avoid this delay, please ensure the instructions relating to these fields are followed precisely.
Where a single payment is made in respect of multiple NZFTs, we require a schedule identifying the trusts and return years which the payment is intended to cover. This must be provided by email or by post with the annual returns.
The schedule might look like the following example.
| Payment details | |||||
|---|---|---|---|---|---|
|
Bank account |
Amount |
Date paid |
Particulars |
Code |
Reference |
|
BB-bbbb-AAAAAA-SSS |
$200 |
14 May 2019 |
XXXTrusteeco |
Frgn Trust |
Ann Return |
| Payment application | |||||
|
Payment allocation |
NZFT number |
Trust name |
Trustee name |
Return year ending |
|
|
$50 |
NZFT000XXXX |
111 Foreign Trust |
XXX Trustee Company |
31/12/2018 |
|
|
$50 |
NZFT000XXXX |
112 Foreign Trust |
XXX Trustee Company |
31/12/2018 |
|
|
$50 |
NZFT000XXXX |
113 Foreign Trust |
XXX Trustee Company |
31/12/2018 |
|
|
$50 |
NZFT000XXXX |
114 Foreign Trust |
XXX Trustee Company |
31/12/2018 |
|
