It can be challenging coming up to 31 March, to consider all the factors which may have an impact on your tax position. We will soon be sending out questionnaires which will allow you to work your way methodically through the information we need to prepare your financial statements and tax returns.
Remember the new tax rules for trusts
The 2021-2022 income year saw new disclosure rules for domestic trusts, requiring trustees to prepare financial statements and provide extra information with their income tax returns.
Trustees need to disclose identification details such as name, date of birth, IRD Number and country of residence of all historical settlors where reasonably available. Make sure you’re up to speed with the requirements.
Consider asset write-offs and sales
Review fixed assets and identify any that can be written off.
Assets purchased on or after 17 March 2021 and below the value of $1,000 can be written off immediately (in most cases).
Make sure assets purchased or sold as part of a sale/purchase agreement align with the purchase price allocation in the relevant agreement. We can go over Inland Revenue’s approach to this with you if you’d like more detail.