Non-active Trusts

Form IR633 (download here) should be completed when a complying trust has met all of the following conditions for an entire tax year:

1. It hasn't derived or been deemed to have derived any gross income from any source.

2. It has no deductions.

3. It has not been party to, or continued with, any transactions with assets of the trust that give rise to any of the following during the tax year:

   1. Income or deemed income in any person's hand.

   2. Fringe benefits to any employee or former employee.

43B of the Tax Administration Act 1969 provides:

(3) In determining whether a trust complies with the requirements of subsection (2), no account shall be taken of any—

(a) reasonable fees paid to professional persons to administer the trust or estate; or
(b) bank charges or other minimal administration costs totalling not more than $1,500 in the tax year; or
(c) income derived by the trustee of a trust or an administrator or executor of an estate during the tax year that would be reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust or estate were an individual, to the extent to which the total amount of that income does not exceed $1,000; or
(d) insurance, rates, interest, and other expenditure incidental to the occupation of a dwelling owned by the trust or estate and incurred by the beneficiaries of the trust or estate.

You will need:

1. The trust details and IRD number.

2. The balance date is normally 31 March.

3. The tax year that the trust met the criteria for being a non-active trust.

 After you finish, please print, sign, and post the completed form to the Inland Revenue address on the form or upload it on Inland Revenue’s web site if you are registered with MyIR: To register click here: https://www.ird.govt.nz/about-this-site/conditions-of-use/our-online-services/myir .

Keep a copy of this form for your records.

If the trust has made a declaration and stops meeting any of the criteria deeming it non-active it must notify the Commissioner that it is no longer a non-active trust and is therefore required to file annual income tax returns.