Taxation of Trusts
(1968) 5 VUWLR 26
Victoria University of Wellington Legal Research Paper Series Richardson Paper No. 17
15 Pages Posted: 30 Jul 2012 Last revised: 21 Feb 2015
Date Written: 1968
Abstract
With acknowledgment of the growing popularity of the trust as an effective taxation planning vehicle, this article explores various principles of taxing trusts under the Land and Income Tax Act 1956. The author first analyses the requirements of sections 155(a) and 155(b) of the Act and the facilitation of income splitting, before turning to consider the shortcomings of section 84A as a plug to the gap of created by the child exemption in personal taxation. The article next considers the application of section 105 to short-term or revocable trusts. Lastly, the article considers general points of settlement of personal income by trust, and the use of trusts for this purpose in light of the general anti-avoidance provision contained in section 108.
Abstract by Holly Hill.
Keywords: Tax law, trusts, estate duty, tax planning, Land and Income Tax Act 1954, income-splitting, discretionary trust, Trustee Act 1956, revocable trust, income alienation, anti-avoidance
JEL Classification: H20, H24, H26, H29, H31, K34
Suggested Citation: Suggested Citation