Individual income tax return guide 2011 - Inland Revenue Department

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IR 3 INDIVIDUAL RETURN GUIDE
Complying trusts are trusts that have been taxed in New Zealand on all
their income since the day they started.
Distributions of beneficiary income which the minor beneficiary rule applies
to are taxed as trustee income. This means the trust is subject to tax on
this income at 33 cents in the dollar, and it’s included in the trustee tax
calculation in the trust’s IR 6 return.
These distributions shouldn’t be included in the minor’s individual
tax return.
All other trusts are non-complying or foreign. Read our guide Trusts’ and
estates’ income tax rules (IR 288) for more details.
What to show in your return
Add up the tax paid by the trustee/s and print the total in Box 16A. Print
your share of the estate or complying trust income in Box 16B.
But, if your estate or trust income includes:
––
interest with RWT deducted, show this at Question 13
––
dividends with imputation credits attached, show this at Question 14
––
overseas income and overseas tax paid, show this at Question 17
––
taxable Māori authority distributions, show this at Question 15.
Income from foreign and non-complying trusts
If you’re a beneficiary of a foreign or non-complying trust please
complete a Schedule of beneficiary’s estate or trust income (IR 307) form.
Taxable distributions from non-complying trusts
Copy the amount of taxable distributions from the non-complying trust
to Box 16C, and attach the IR 307 to the top of page 3 of your return.
We separate taxable distributions from non-complying trusts because
they’re taxed at a different rate. If you have this type of income, your tax
calculation at Question 34 may not be correct. We’ll do this calculation
for you and send you a notice of assessment.
Question 17 Overseas income
If you received income from, or while you were overseas, between
1 April 2010 and 31 March 2011, show it at Question 17B in New Zealand
dollars. This includes payments of portable NZ Super or portable
veteran’s pensions paid to New Zealand residents travelling overseas.
Transitional residents must include any foreign employment or service
income at Question 17B.