Taxation of Trusts

15 Pages Posted: 30 Jul 2012 Last revised: 21 Feb 2015

See all articles by Ivor Richardson

Ivor Richardson

Victoria University of Wellington, Faculty of Law (Deceased)

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

Richardson, Ivor, Taxation of Trusts (1968). (1968) 5 VUWLR 26, Victoria University of Wellington Legal Research Paper Series Richardson Paper No. 17, Available at SSRN: https://ssrn.com/abstract=2119737

Ivor Richardson (Contact Author)

Victoria University of Wellington, Faculty of Law (Deceased)

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