Trustee tax obligations

Inland Revenue recently highlighted the importance of notifying the department in writing if you have resigned as a trustee.

The key points were:

• Trustees are personally liable for the tax obligations of a trust

• Inland Revenue will continue to recognise you as a trustee of a trust until they are notified in writing of your resignation

• For income tax and GST purposes, you may be liable for any outstanding tax not only while you were a trustee, but also for the period of time between your resignation and Inland Revenue receiving written confirmation that you have resigned

The message is clear.

If you resign as a trustee, notify Inland Revenue in writing as soon as possible following your resignation, so they can update their records.

If you don't notify Inland Revenue in writing, you're still on the hook.

Trust good practice.

Lindsay