Section HD 12 — Income Tax Act 2007: Trusts

HD 12 Trusts Beneficiary income and taxable distributions (1) If a beneficiary of a trust, other than a beneficiary of a community trust, derives an amount of beneficiary income or taxable distribution in a tax year, the trustee of the trust is treated under section HC 32 (Liability of trustee as agent) as the agent of the beneficiary. Settlors (2) If a trustee of a trust, other than a charitable trust, derives trustee income in a tax year, and a settlor of the trust is resident in New Zealand in the tax year, the settlor is treated under section HC 29 (Settlors’ liability to income tax) as the agent of the trustee for income tax payable by the trustee (but not for income tax that the trustee is liable for as agent). Defined in this Act: agent , amount , beneficiary income , charitable trust , community trust , income tax , pay , resident in New Zealand , settlor , tax year , taxable distribution , trustee , trustee income , Compare: 2004 No 35 ss HH 3(2) , HH 3A(2) , HH 4(4)