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When filing annual returns for a New Zealand foreign trust, the contact trustee is required to provide financial statements that meet the minimum standards. These are required by the Tax Administration (Financial Statements Foreign Trusts) Order 2017.

This may require that you prepare a set of financial statements specifically for the purpose of complying with these legislative standards.

In complying with the minimum standards for financial statements, we expect to see:

  • a balance sheet setting out the assets, liabilities and net assets of the trust as at the end of the return year
  • a profit and loss statement showing income derived, and expenditure incurred, by the trust during the return year
  • a statement of accounting policies setting out the policies that have been applied and a description of the effect of any material changes
  • a reconciliation of movements, on a line-by-line basis, from opening to closing balance, of all settlor and beneficiary accounts, including loans; and, of net assets (this information could also be presented in the form of a statement of changes in equity)
  • comparative figures for the previous return year (where applicable)
  • a statement of the trust's New Zealand taxable income, even if nil.

The due date for an annual return is six months after the trust's balance date. If the trust does not have a balance date, it is due by 30 September based on a default date of 31 March.

Tax Administration (Financial Statements Foreign Trusts) Order 2017