This document discusses potential tax implications of a trust making distributions or loans to beneficiaries who are overseas tax residents. It summarizes key tax considerations and information sharing agreements for several jurisdictions, including Australia, China, India, the US, and the UK. The document cautions that capital distributions can have unintended tax consequences. It also notes increasing global transparency with the Common Reporting Standard and other information exchange agreements.
Presentation at the Stanford & Silicon Valley Community Foundation Conference on Charitable Giving 2018
Kirsten Wolff
Charitable Lead Trusts Demystified
Sideman & Bancroft LLP
איל הורוביץ הוא אדם קשוב-פירוט ובעל רמה גבוהה של דיוק. תכנון המס מאפשרת יצירת citizento את השימוש הטוב ביותר של מספר ממס, הטבות ובקפוצ'ינו להורדת המס שלהם, האחריות מעל לשנה פיננסית.
Assets in a custodial account belong to the minor. Any income
earned in a custodial account is taxed to the minor. A
custodian, usually an adult relative, controls the assets until
the minor reaches the age set by state law (21 in most states).
Assets in a custodial account can be used to pay for education
expenses for the minor.
Presentation at the Stanford & Silicon Valley Community Foundation Conference on Charitable Giving 2018
Kirsten Wolff
Charitable Lead Trusts Demystified
Sideman & Bancroft LLP
איל הורוביץ הוא אדם קשוב-פירוט ובעל רמה גבוהה של דיוק. תכנון המס מאפשרת יצירת citizento את השימוש הטוב ביותר של מספר ממס, הטבות ובקפוצ'ינו להורדת המס שלהם, האחריות מעל לשנה פיננסית.
Assets in a custodial account belong to the minor. Any income
earned in a custodial account is taxed to the minor. A
custodian, usually an adult relative, controls the assets until
the minor reaches the age set by state law (21 in most states).
Assets in a custodial account can be used to pay for education
expenses for the minor.
This workshop helps attendees understand the income taxation of trusts and estates, identify sources of taxable income, calculate distributable net income, and apply the Alternative Minimum Tax.
Presenter: David Spence, Jennifer Han, Allison Kroeker, and Li (Fiona) Xu of Royse Law Firm.
You pay self-employment (SE) tax when net earnings from
self-employment are $400 or more. You are self-employed
if you carry on a trade or business as a sole proprietor (including
farmers) or as a general partner in a partnership.
A trade or business generally is an activity carried on for
a livelihood or in good faith to make a profit. Facts and circumstances
determine whether or not an activity is a trade
or business.
2013 Changes in Tax Law and Year End Tax Planning Opportunities
Individuals
o 2013 tax rates
o Tax on investment income
o Other changes in tax law affecting individuals
o Year end planning opportunities
Businesses
o Employment tax
o Depreciation
o Pass-through entities
Estate and Gift Tax
o Exemption amounts
o Tax rates
o Gifting strategies
o Valuation discounts
o Grantor trusts
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Nicola Wealth
In this webinar, Nicola Wealth CEO, John Nicola will address timely taxation topics to help you understand the developments in Canadian tax policy in relation to the taxation of homes, wealth, capital gains, and marginal tax rates. John will further prepare you to navigate the current tax environment by reviewing several tax planning options available to you and how these strategies integrate with overall portfolio design.
You may have to pay federal income taxes on your Social
Security benefits. This usually happens only if you have
other substantial income (such as wages, self-employment,
interest, dividends and other taxable income that must be
reported on your tax return) in addition to Social Security
benefits.
Nicola Wealth Specialty Series: The Business Owner's Path to TransitionCharis Whitbourne
An interactive half-day workshop designed specifically for business owners, their business partners, and their close advisors. This workshop focuses on the challenges and solutions faced during the business transition; whether you are preparing to sell your company or pass it to the next generation.
Featuring a panel of seasoned experts, we review a real-world business transition scenario, providing valuable discussion and insight around the complexities of transitions.
High Net Worth Webinar Series - Tax Planning and Update for 2022Citrin Cooperman
As 2021 comes to an end, business owners and individuals are seeking opportunities to maximize their savings through year-end tax planning. This webinar session will help you navigate the many complexities, obstacles, and impending tax landscape changes that the 2021 tax year brings to the table and what 2022 has in store.
Nicola Wealth Presents Share the Pie: The Art of Building a Winning CultureNicola Wealth
John Nicola, Chairman and CEO of Nicola Wealth, joined Vanessa Flockton, Senior Vice President Advisory Services at Nicola Wealth to explain the art of building a winning company culture through the Share the Pie business model.
What does the budget means for you and your clients and, importantly, any tax planning opportunities for high net worth individuals and business owners.
Most observers do not believe that further curbs on public spending can reduce our debts to an acceptable level, thus suggesting that George will have to increase taxes in a way that will not hurt the average citizen. It also suggests that hopes of reforms that reduce tax yields are likely to prove unrealistic. In particular, an increase in the IHT limit (other than the promised limited relief for family homes) seems unlikely. We also expect further pain for non-doms and tax avoiders. We think that some tax relief for small businesses is likely, but as such businesses create scope for tax evasion and avoidance, we are sceptical as to how helpful these are likely to be in practice.
Impact of TCJA,TCJATCJATCJATCJATCJATCJATCJATCJATCJAtradingwork567
Impact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJA
While residing in the UK, US citizens have numerous investing hurdles. They must remain vigilant about laws and regulations at all times. Contact a Maseco US UK financial advisor today to learn how we can assist you in managing your domestic and international investments.
This workshop helps attendees understand the income taxation of trusts and estates, identify sources of taxable income, calculate distributable net income, and apply the Alternative Minimum Tax.
Presenter: David Spence, Jennifer Han, Allison Kroeker, and Li (Fiona) Xu of Royse Law Firm.
You pay self-employment (SE) tax when net earnings from
self-employment are $400 or more. You are self-employed
if you carry on a trade or business as a sole proprietor (including
farmers) or as a general partner in a partnership.
A trade or business generally is an activity carried on for
a livelihood or in good faith to make a profit. Facts and circumstances
determine whether or not an activity is a trade
or business.
2013 Changes in Tax Law and Year End Tax Planning Opportunities
Individuals
o 2013 tax rates
o Tax on investment income
o Other changes in tax law affecting individuals
o Year end planning opportunities
Businesses
o Employment tax
o Depreciation
o Pass-through entities
Estate and Gift Tax
o Exemption amounts
o Tax rates
o Gifting strategies
o Valuation discounts
o Grantor trusts
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Nicola Wealth
In this webinar, Nicola Wealth CEO, John Nicola will address timely taxation topics to help you understand the developments in Canadian tax policy in relation to the taxation of homes, wealth, capital gains, and marginal tax rates. John will further prepare you to navigate the current tax environment by reviewing several tax planning options available to you and how these strategies integrate with overall portfolio design.
You may have to pay federal income taxes on your Social
Security benefits. This usually happens only if you have
other substantial income (such as wages, self-employment,
interest, dividends and other taxable income that must be
reported on your tax return) in addition to Social Security
benefits.
Nicola Wealth Specialty Series: The Business Owner's Path to TransitionCharis Whitbourne
An interactive half-day workshop designed specifically for business owners, their business partners, and their close advisors. This workshop focuses on the challenges and solutions faced during the business transition; whether you are preparing to sell your company or pass it to the next generation.
Featuring a panel of seasoned experts, we review a real-world business transition scenario, providing valuable discussion and insight around the complexities of transitions.
High Net Worth Webinar Series - Tax Planning and Update for 2022Citrin Cooperman
As 2021 comes to an end, business owners and individuals are seeking opportunities to maximize their savings through year-end tax planning. This webinar session will help you navigate the many complexities, obstacles, and impending tax landscape changes that the 2021 tax year brings to the table and what 2022 has in store.
Nicola Wealth Presents Share the Pie: The Art of Building a Winning CultureNicola Wealth
John Nicola, Chairman and CEO of Nicola Wealth, joined Vanessa Flockton, Senior Vice President Advisory Services at Nicola Wealth to explain the art of building a winning company culture through the Share the Pie business model.
What does the budget means for you and your clients and, importantly, any tax planning opportunities for high net worth individuals and business owners.
Most observers do not believe that further curbs on public spending can reduce our debts to an acceptable level, thus suggesting that George will have to increase taxes in a way that will not hurt the average citizen. It also suggests that hopes of reforms that reduce tax yields are likely to prove unrealistic. In particular, an increase in the IHT limit (other than the promised limited relief for family homes) seems unlikely. We also expect further pain for non-doms and tax avoiders. We think that some tax relief for small businesses is likely, but as such businesses create scope for tax evasion and avoidance, we are sceptical as to how helpful these are likely to be in practice.
Impact of TCJA,TCJATCJATCJATCJATCJATCJATCJATCJATCJAtradingwork567
Impact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJAImpact of TCJA
While residing in the UK, US citizens have numerous investing hurdles. They must remain vigilant about laws and regulations at all times. Contact a Maseco US UK financial advisor today to learn how we can assist you in managing your domestic and international investments.
Americans face many investing challenges while living in the UK. They require help with keeping constant vigilance on rules and regulations. Get in touch with a Maseco financial advisor expert today to see how we can help you get a handle on your domestic and foreign investments.
The Finance Act 2015 - How does it affect your clients? By CBW TaxRobert Maas
How will the many significant changes in the Finance Act 2015 affect your clients?
Let us share with you our thoughts on all of the main changes in the Finance Act.
Introduction to Taxation of Foreign Investment in U.S. Real EstateSmart Accountants
This webinar introduces some of the most important tax issues that non-US investors in U.S. real estate should consider.
You will learn:
- Introductions to US Real Estate investment by Foreign Investor
- FDAP income (Not trade or business income)
- Effectively Connected Income (ECI)
- Foreign Investment in Real Property Tax Act of 1980 (FIRPTA)
- Choice of proper investment structure and tax planning
- Tax Implications for:- Rental income tax- Capital Gain Tax on the eventual disposition of property- Estate/Gift tax consequences
- Other consideration- Anonymity – Nondisclosure of the identity- Assets protection- The simplicity of the structure balances against complexity costs.
Your Taxes: Top 10 Things to Know & Tax Filing Tips and TrapsModernAdvisor
Faizal Valli is an independent tax advisor with 13 years experience in tax planning. He has previously worked with small accounting firms as well as an international tax firm and a boutique practice in taxes over a wide variety of experience.
In this presentation, we discuss the top 10 changes introduced in the federal budget which was presented on Tuesday, March 22nd. We review what you need to know about these tax changes that will affect you in 2016 and going forward. Next we’ll switch gears and talk about some tax tips and traps to be aware of for the 2015 filing season as well as generally.
Super Caps are coming soon, great investment alternatives are already here. Sarah McGavin
View our presentation on how an investment bond can help you grow your clients’ wealth and be a complement to superannuation, presented by National Strategy Manager, Greg Bird.
Investing In New Zealand Property Market For Australians Part 2Real Estate Investar
This new, educational webinar covers exactly how to invest successfully in the New Zealand market as a strategy along with the pitfalls to be aware of for Australian investors.
Tax Treatment of Non-UK Domiciled PersonsNaddir Muthu
Reforms to the tax treatment of non-UK domiciled persons
The use of overseas Trusts for non-UK domiciled persons
The use of non-Trust solutions for former UK domiciles and UK persons
Reforms to IHT on UK residential property held through overseas companies
New Zealand parliament Finance and Expenditure Committee (FEC) submission made in March 2019 by Baucher Consulting.
Modernising tax administration and remedial matters bill.
Presentation to Trusts Special Interest Group. The case between Blackburn Trustees and Crowe Horwath around Capital Gains Tax is a portent of the future for New Zealand tax.
Brightline test overview in this context and High Court decision by Terry Baucher, Baucher.tax
In this presentation, Terry Baucher of Baucher Consulting (www.baucherconsulting.co.nz) discusses The taxation of property transactions in New Zealand.
Baucher explains New Zealand's Capital Tax or rather lack of, before delving into details about how you can still be taxed based on who you are "Associated" with.
Baucher then goes on to discuss the IRD Property Compliance Program and the 10 year rule.
This presentation was presented in November 2013.
Terry Baucher of Baucher Consulting (www.baucherconsulting.co.nz) discusses the recent developments on Inheritance Tax and the potential implications these could have for Trust and Estate Practitioners.
Baucher provides a re-introduction to Inheritance Tax, how Inheritance Tax influences Trusts and the tax issues around Trusts before concluding with the latest developments in the area of Inheritance Tax.
Baucher presented this presentation in July 2013.
In a presentation for Atainz, Terry Baucher of Baucher Consulting (www.baucherconsulting.co.nz) explains how to handle an IRD Audit & what to do should the IRD come calling.
Baucher also goes into detail about the difference between an IRD Audit and an IRD Review and how each should be treated.
This presentation was given on behalf of Atainz in March 2013
New Zealand tax update on Foreign Investment Funds & Residency, IRD audit trendsBaucher Consulting Limited
Presentation by Terry Baucher to the South Auckland Practice Group of accountants on 27th February 2014
New Zealand tax update on Foreign Investment Funds, Overseas Companies trading in New Zealand, Residency, IRD Audits
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
New Zealand Law Society: Taxation and offshore beneficiaries
1. Terry Baucher
May 2019
Copyright reserved: This presentation or any portion thereof may not be reproduced without the express permission of NZLS CLE Ltd.
Taxation and off–shore beneficiaries
2. Today’s session
• Overview of potential pitfalls involved in a trust
making distributions, or providing funds to
beneficiaries who are overseas tax residents
• Opportunities exist for tax planning
• But…overseas jurisdictions tax treatment of trust
distributions can differ in critical aspects
particularly for “capital” distributions and loans
• Distributions/loans may have implications under
CRS/AEOI, FATCA and EU 4th & 5th AML Directives
3. New Zealand tax – the basics (1)
For purposes of this presentation I’ve assumed:
• Any trust is a “standard” New Zealand trust (a
complying trust) i.e. settled under New Zealand law
by a New Zealand resident settlor with New
Zealand resident trustees
• Distributions are at discretion of trustees
• No settlor, trustee or other person with a power of
appointment over a trust is resident outside New
Zealand
4. New Zealand tax – the basics (2)
• Income derived by a trustee of a complying trust is
either classified as beneficiary income or trustee
income
• Income distributed to beneficiary is “beneficiary
income” & taxed at beneficiary’s marginal rate
• Trustees may have up to 12 months after end of
income year to distribute beneficiary income
• Income not distributed is trustee income and taxed
at 33%
5. Distributions to overseas beneficiaries could be a
means of reducing tax bill.
For example trust has income of $100,000
Tax as trustee income @33% $33,000
Distribute $25,000 to four non residents
Tax on $25,000 = $3,395 each $13,580
Possible saving $19,420
Trust distributions – the opportunity
6. Beware of the tax distraction…
Overseas tax
authority
TrusteesTax benefits
7. New Zealand tax
Financial Arrangements Regime
• Alternative to distributions could be to make loan to
beneficiary
• BUT if loan not NZD denominated then forex issue
under financial arrangements regime arises
• For example in July 2019 the Jon Snow Trust advances
£250,000 to Jaime, a beneficiary living in London
• July 2019 value £250,000 @ 0.55 $454,545
• 31st March 2020 value £250,000 @ 0.50 $500,000
• Unrealised foreign exchange gain $45,455
8. Meet Carol
• Widowed but in good health now living in
Auckland after living in America, Australia and
the United Kingdom
• Carol’s assets are held in trust for asset and
estate planning purposes
• The beneficiaries include Carol’s two children
and five grandchildren
• Carol would like to make regular distributions
to her family
9. Australia
• Lucy, one of Carol’s grandchildren, has been
living and working in Sydney since 2016.
• She qualifies as a “temporary resident” for
Australian tax purposes.
• As such Lucy is NOT taxable on non-Australian
sourced investment income and capital gains.
• This would cover distributions of New Zealand
interest and rental income, and dividends from
non-Australian companies
10. Australia – timing of income
• Australian tax year runs to 30 June
• If beneficiary not a temporary resident the
beneficiary is taxable when “presently entitled” to
trust income for a tax year
• A beneficiary is “presently entitled” when he or
she has by the end of that tax year, a present or
immediate right to demand payment from the
trustee
• For example, a distribution relating to the year
ended 31st March 2019 allocated on 1st July 2019
would be taxable in the year ended 30th June 2020
11. Australia – Capital Distribution (1)
• In December 2017 ATO finalised Taxation
Determinations TD 2017/23 and TD 207/24 relating
to the treatment of capital gains made by foreign
trusts
• Under Determination TD 2017/23 where a foreign
trust distributes a capital gain which does not
represent “taxable Australian property” for capital
gains purposes to an Australian resident, the
beneficiary is assessed on that gain as if it is ordinary
income
12. Australia – Capital Distribution (2)
• Under the Determination the distribution does not
retain its character as a capital gain
• The 50% discount for capital gain is therefore no
longer available and capital losses of the
beneficiary are not available for offset against the
gain
• Accordingly, such a distribution to an Australian-
resident beneficiary could be taxable at up to 45%
• It is NOT clear if Determination TD 2017/23 applies
to any distribution received by someone who is a
temporary resident
13. Australia – Capital Distribution (3)
• Furthermore the two Determinations also deem
the full amount of a loan made by a New Zealand
trust to an Australian resident beneficiary to be
income
• Again it is not clear if the temporary resident
exemption is available in such circumstances
• This treatment could also apply to distributions of
trustee income
14. Australia – Information Sharing (1)
• Australia is a signatory to the CRS/AOEI
• Separately, information can be shared under
Article 26 of the Australia-New Zealand DTA
• During the year ended 31st December 2018, Inland
Revenue sent 64 exchange of information requests
to the ATO and received 13 in turn
15. Australia – Information Sharing (2)
• Article 27 of the DTA allows for assistance in the
collection of taxes
• As of 30th June 2018 approximately $49 million of
income tax, PAYE, FBT and GST owed by persons
whose last known address was in Australia
• During the year ended 30th June 2018 Inland
Revenue sought assistance from the ATO under
Article 25 in relation to two cases, one involving
over AUD1.4 million
• These are separate from actions taken over Child
Support and Student Loan debt
16. People’s Republic of China (1)
Carol’s grandson Arawa and his Chinese partner,
Li want to purchase an apartment in Shanghai and
the trustees of the Carol Family Trust propose
making a distribution to assist Arawa and Li with
the purchase.
17. People’s Republic of China (2)
Income distribution:
• Investment income taxed at 20%
• Exception is royalties which are taxable at up to top
rate of 45%
• Taxable in year of receipt (Chinese tax year is 31st
December)
18. People’s Republic of China (3)
Capital distributions:
• Distribution of capital gains taxable at 20%
• Not clear what would be treatment of distribution of
trustee income. Worst case view would be that
taxed at 20%
• At present no specific measures regarding interest
free advances
19. People’s Republic of China (4)
Other issues:
• Anti-avoidance measures introduced in August
2018 could affect attempted tax–free capital
distributions
• Also in August 2018 State Administration of
Taxation announced crack down on non-
declaration of income including use of trusts
• The State Administration of Taxation also intends
to make greater use of the information exchange
provision in Article 26 of the DTA with New Zealand
20. India (1)
• Carol’s granddaughter Arabella lives in Mumbai
• A distribution of income would represent income for
Arabella taxed at her marginal rate
• The Indian tax year end is 31 March
• Normal tax rates between 5% and 30%
• 10% surcharge applies to incomes over 1,000,000 INR
(@$22,000)
• Surcharge is 15% if income exceeds 10,000,000 INR
(@$220,000)
21. India (2)
• If a capital distribution is made to Arabella then taxed
at a flat 20% if it represents a “long-term” gain
• Long-term gains are those arising from assets held for
more than 24 months
• If not a long-term gain then treated as income and
taxed at relevant rate
• India another example of the need for trustees to
maintain records as if a CGT applied
22. India (3)
• India has no specific gift duty. But amounts
exceeding 50,000 Indian Rupees (@$1,100) in year
received from any person who is NOT a relative
deemed income if made without consideration or for
an inadequate consideration.
• Alternative might be for trust to distribute or lend
funds to a beneficiary (maybe Carol) who then gifts
the sum to Arabella.
23. India – Information Sharing
• India is a signatory to CRS/AEOI
• India has a double tax agreement with New Zealand
• Article 26 provides for exchange of information
• From 7th September 2017 Article 26A enables the
Indian Income Tax Department and Inland Revenue
to assist each other in the collection of “revenue
claims”
24. United States of America (1)
Carol’s grandson Rangi is an actor living in Los Angeles
• Distribution of income is taxable in year of receipt
and at Rangi’s marginal tax rate
• Tax rates vary from 10% to 37%
• Rangi will also need to complete and file a form
3520 Annual Return reporting the transaction
25. United States of America (2)
If a capital distribution is made to Rangi
• Distribution of capital gain is taxable
• Distributed capital gain must also be included on
form 3520
• Form 3520 also takes into consideration the
undistributed income of the foreign trust from
earlier years and applies a weighting to determine
the amount of the taxable distribution
• This would appear to catch distributions of trustee
income
26. United States of America (3)
For purposes of form 3520 distributions also include:
• Loans from a foreign trust
• Use of property of foreign trust at below market
value (e.g. staying rent free at family bach)
27. United States of America (4)
• In addition to form 3520, a foreign trust with a
United States “owner” must file an annual
information return form 3520-A
• It appears that for this purpose “owner” includes a
United States resident beneficiary (i.e. Rangi)
• Details to be included on form 3520-A include all
worldwide income prepared under United States
income tax principles
• The form also requires a balance sheet of all assets
and liabilities of the trust
28. United States of America
Information Sharing
• United States is NOT a signatory to CRS/AEOI
• Information must be provided to IRS under FATCA
but no mutual sharing of information
• Separately information is shared on request under
Article 25 of the DTA between New Zealand and the
United States of America
• At present no clause in DTA providing mutual
assistance in collection of taxes
29.
30. United Kingdom – Remittance Basis
• A special remittance basis is available for persons
who are tax resident but not domiciled in the UK,
commonly referred to as “Non-doms”
• These persons are only taxable on income and gains
remitted to UK. Carol’s granddaughter Lizzie
qualifies as a non-dom
• Remittance basis rules have changed significantly
over past ten years but still offer some tax planning
opportunities
31. United Kingdom
Remittance Basis Example 1
• For the year ended 31st March 2020 Carol’s family
trust proposes distributing New Zealand interest
of £1,900 to Lizzie
• The distribution will be credited to her beneficiary
current account
• As Lizzie is a non-dom and the income has not
been remitted to the UK she can exclude it from
her UK tax return for the year
• She is still entitled to her UK tax-free personal
allowance of £12,500 for the year ended 5th April
2021
32. United Kingdom
Remittance Basis Example 2
• Alternatively, Carol’s trust proposes distributing
New Zealand rental income for the year ended
5th April 2020 of £15,000 to Lizzie
• Lizzie can exclude the rental income from her
UK tax return for the year
• If she does this, she will then NOT be entitled to
the UK tax-free personal allowance of £12,500
• Trade-off between lower tax for trust and
higher tax for Lizzie
33. United Kingdom
Capital Distribution (1)
• During the year ended 5th April 2020 Carol’s trust
sold a flat previously occupied by Carol as her
principal residence
• The sale realised a gain of £150,000
• Carol would like to distribute this to Lizzie to
enable Lizzie to purchase a property in London
34. United Kingdom
Capital Distribution (2)
• Distribution would be caught under anti-avoidance
provisions effective 6th April 2018
• Distribution would be treated as a capital gain for
Lizzie taxable at up to 28%
• Lizzie can use her CGT annual tax-free allowance of
£12,000 against distributed gain
35. United Kingdom
Capital Distribution Alternative (1)
• Trustees suggest distributing the capital gain to
Carol who then gifts it to Lizzie
• This is also no longer possible from 6th April 2018
• From that date UK resident beneficiaries will be
taxed on distributions of accumulated income and
capital gains made to them
• No longer possible to “wash-out” accumulated
income and gains by distributing them to other
persons not resident in UK
36. United Kingdom
Capital Distribution Alternative (2)
United Kingdom
Interest free loan in GBP
Family
Trust
New Zealand
Lizzie
(Beneficiary)
• If lent in GBP – forex issue
• UK situated assets of the trust also
includes the interest free loan
• Loan now subject to inheritance tax
• 4th AML Directive disclosures
Instead of a distribution Carol’s lawyer suggests the trust lends
the £150,000 to Lizzie
37. Beneficiaries in the UK – Disclosures (1)
Reg 45(14) The Money Laundering, Terrorist Financing and
Transfer of Funds (Information on the Payer) Regulations 2017
in force 26th June 2017
The NZ trust will have reporting obligations to HMRC in every
year in which trustee LIABLE to pay ANY of the following taxes
in the UK:
• Income tax;
• Capital gains tax;
• Inheritance tax;
• Stamp duty reserve tax; and
• Stamp duty land tax.
38. Beneficiaries in the UK – Disclosures (2)
If a New Zealand trust has a reporting obligation then it must
provide following information:
• Name, date of establishment, country of residence and
country of administration of trust, and details of the
trustee;
• Name, tax number, address, passport number, and date of
birth of settlor, all current beneficiaries, and “all controlling
persons” (including protectors and any other person with
the ability to influence the trustee’s decisions);
39. Beneficiaries in the UK – Disclosures (3)
Reporting obligations continued:
• Description of the class of “potential” beneficiaries,
INCLUDING any wishes as to future beneficiaries by the
settlor in a Memorandum of Guidance or other document;
• Details of the trust’s worldwide assets including current
market value; and
• Details of the trust’s legal, financial and tax advisors.
• If not already registered with HMRC must report by 31
January following end of tax year
40. Beneficiaries in the UK
Other information sharing
• Article 25 of the UK-NZ DTA is the “standard” information
sharing provision
• During the year ended 31st December 2018 Inland Revenue
sent HMRC three exchange of information requests and
received nine
• Article 25A provides for mutual assistance in collection of taxes
• As of 30th June 2018 approximately $652,000 of income tax,
PAYE and GST owed to Inland Revenue by persons where the
last known address was in the UK
• For the year ended 30th June 2018 Inland Revenue made one
request to HMRC for assistance and received three
43. Conclusion
• General rule is that income distributions are
usually taxable
• May be more opportunities for beneficial tax
planning on income distributions to
beneficiaries in Australia and the UK
• Distributions of capital very problematic
• Factor in effect of CRS/AEOI, FATCA and
other information sharing initiatives